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A company is evaluating 2 investment projects

Finance Oct 15, 2020

A company is evaluating 2 investment projects. Each requiring up-front expenditure of $1.5 million. The projects are expected to produce the following net cash flowes

 

year Project A Project B

1 500,000 2,000,000

2 1,000,000 1,000,000

3 2,000,000 600,000

 

What is each projects IRR?

 

What is each project's NPV if the cost of capital is 10 percent? 5 percent? 15 percent?

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