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You have two potential investment projects, Project A andProject B. You can take one, but not both. The annual cash flowsfor the two projects are:Year0123Project A Cash Flow-$50,000$45,000$5,000$5,000Project B Cash Flow-$50,000$5,000$5,000$50,000a. Compute the IRR for each project. b) Compute the NPV for eachproject if the appropriate discount rate is5%. Which project would you take, and why?c) Compute the NPV for each project if the appropriatediscount rate is 10%. Which project would you take, and why? d)Summarize the principles demonstrated by this problem.
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