Using a WACC of 10% and the cash flows provided below, calculate the NPV and...
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Using a WACC of 10% and the cash flows provided below, calculate the NPV and IRR for the following projects. Projects A and B are mutually exclusive, which Year Project A Project B would you accept and why? 0 -$1,000 -$1,000 1 $200 $1,000 N $300 $100 3 3 $500 $100 4 $700 $100 O A NPV = $283.52, IRR = 20.08% B NPV = $135.17, IRR = 20.80%. Accept both Project A: NPV = $1,037.77, IRR = 18.44%, Project B: NPV = $2,023.88, IRR = 18.50%. Accept both O A NPV = $283.52, IRR = 20.08% B NPV = $135.17, IRR = 20.80%. Accept project B Project A: NPV = $1,037.77, IRR = 18.44%, Project B: NPV = $2,023.88, IRR = 18.50%. Accept B O A NPV = $283.52, IRR = 20.08% B NPV = $135.17, IRR = 20.80%. Accept project A
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