A firm has a capital budget of $100, which must be spent on one of...
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Accounting
A firm has a capital budget of $ which must be spent on one of two projects, each requiring a present outlay of $ Project A yields a return of $ after one year, whereas Project B yields $ after years.
Questions:
What is the NPV of each project using a discount rate of
What is the IRR of each project?
What are the project rankings based on these two investment decision rules?
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