Question: You examine the cash flows for 4 mutually exclusive projects below. According to the IRR Rule, which project should you accept? Year A B C

You examine the cash flows for 4 mutually exclusive projects below. According to the IRR Rule, which project should you accept?

Year A B C D
0 -700

-500

 -900 -1100
1 75 100 400 300
2 150 150 150 300
3 400 250 300 350
4 350 200 350 450
5 100 75 100 150
Cost of Capital 7.0% 7.0% 9.5% 7.5%

A

B

C

D

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