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You are considering the following two mutually exclusive projects. The required

ID: 2644121 • Letter: Y

Question

You are considering the following two mutually exclusive projects. The required rate of return is 14.6 percent for project A and 13.8 percent for project B. Which project should you accept and why? Year Project A Project B project A: because it has the higher required rate of return project B: because it has the largest total cash inflow project A: because its NPV is about $4,900 more than the NPV of project B project B: because it has the lower required return project B: because it has the largest cash inflow in year one What is the net present value of a project that has an initial cash outflow of $34900 and the following cash inflows? The required return is 15.35 percent. Day Interiors is considering a project with the following cash flows. What is the IRR of this project?

Explanation / Answer

answer:

6) C

7) A

8) A

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