Question: Trident Corp. is evaluating two independent projects. The costs and expected cash flows are given in the following table. The cost of capital is 10
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a. Calculate the projects NPV.
b. Calculate the projects IRR.
c. Which project should be chosen based on NPV? Based on IRR? Is there a conflict?
d. If you are the decision maker for the firm, which project or projects will be accepted? Explain yourreasoning.
021000 051200 057200 53862 95563 055555 122222 012345
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a Project A Cost of this project 312500 Annual cash flows 121450 Required rate of return 10 Length o... View full answer
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