Consider my cost of capital is 4%. I have got three projects to choose from....
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Finance
Consider my cost of capital is 4%. I have got three projects to choose from.
A) NPV = -49000 IRR = 5.5%
B) NPV = -40000 IRR = 6%
C) NPV = -55000 IRR = 5%
One can observe that all NPV'sare negative but IRRwise projects are good. Kindly advise regarding how to critically evaluate the projects to choose the best one.
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