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consider two mutually exclusive projects with the following cash flows: Project A B C/ F C $(41,215) $(46,775) /F $12,500 $15
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Answer #1

Using excel to calculate

CF0 CF1 CF2 CF3 CF4 CF5 CF6
-41215 12500 14000 16500 18000 20000 0
-46775 15000 15000 15000 15000 15000 15000
Incremental Cash Flows 5560 -2500 -1000 1500 3000 5000 -15000

SInce incremental cash flows changes its sign 3 times there are 3 IRRS

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