Question: Your firm is looking at two mutually exclusive projects. Project X has an NPV of $750,000 and an IRR of 14.3%. Project Y has an
Your firm is looking at two mutually exclusive projects. Project X has an NPV of $750,000 and an IRR of 14.3%. Project Y has an NPV of $650,000 and an IRR of 18.8%. Your firm's required rate of return is 12.5%. Which of these mutually exclusive projects would you accept (either, both, or one particular project -- be specific, it matters). WHY is that your decision?
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