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Business, 11.12.2019 00:31 shardonnay2160

You are considering two mutually exclusive projects. project a has cash flows of -$125,000, $51,400, $52,900, and $63,300 for years 0 to 3, respectively. project b has cash flows of -$85,000, $23,100, $28,200, and $69,800 for years 0 to 3, respectively. project a has a required return of 9 percent while project b’s required return is 11 percent. should you accept or reject these projects based on irr analysis?
a) accept project a and reject project b
b) reject project a and accept project b
c) accept both projects
d) reject both projects
e) you should not use irr; use a different method of analysis.

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