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Here are the cash flows for two mutually exclusive projects: Project Co C A -$ 30,800 +$ 12,200 C2 +$ 12,200 B -30,800 0 0 C3 +$ 12,200 +38,700 a. At what interest rates would you prefer project A to B? Note: For computation, consider all even discount rates from 2% to 20% range. S Interest rates above % b. What is the IRR of each project? Note: Round your answers to 2 decimal places. Project A Project B IRR % %

Here are the cash flows for two mutually exclusive projects: Project Co C A -$ 30,800 +$ 12,200 C2 +$ 12,200 B -30,800 0 0 C3 +$ 12,200 +38,700 a. At what interest rates would you prefer project A to B? Note: For computation, consider all even discount rates from 2% to 20% range. S Interest rates above % b. What is the IRR of each project? Note: Round your answers to 2 decimal places. Project A Project B IRR % %

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Here are the cash flows for two mutually exclusive projects: Project Co C A -$ 30,800 +$ 12,200 C2 +$ 12,200 B -30,800 0 0 C3 +$ 12,200 +38,700 a. At what interest rates would you prefer project A to B? Note: For computation, consider all even discount rates from 2% to 20% range. S Interest rates above % b. What is the IRR of each project? Note: Round your answers to 2 decimal places. Project A Project B IRR % %
Transcribed Image Text:Here are the cash flows for two mutually exclusive projects: Project Co C A -$ 30,800 +$ 12,200 C2 +$ 12,200 B -30,800 0 0 C3 +$ 12,200 +38,700 a. At what interest rates would you prefer project A to B? Note: For computation, consider all even discount rates from 2% to 20% range. S Interest rates above % b. What is the IRR of each project? Note: Round your answers to 2 decimal places. Project A Project B IRR % %
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