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Capital Budgeting Example - NPV, IRR.You are analyzing the following two mutually exclusive projects, where Project...

  1. Capital Budgeting Example - NPV, IRR.You are analyzing the following two mutually exclusive projects, where Project A is a 4-year project and Project B is a 3-year project:

Project A             Project B

-$1,000              -$ 800

1 350                      350

2 400                      400

3 400                      400

4 400                      -----

Assuming a discount rate of 15%, calculate the net present values and internal rates of return for projects A and B.

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Answer #1

А в cash flows YEAR 1 2 Projec A -$1,000 $350 $400 $400 $400 19.68% IRR(B3:37) T Project B -$800 $350 $400 $400 $0 20.07% IRR

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