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Calculate irr for a

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Reference no: EM132497637

Consider the following two mutually exclusive projects:

Cash Flows ($ millions)

Project C0 C1 C2 C3

A -200 +110 +120 0

B -200 0 0 +250

A. Calculate IRR for A, IRR for B, and the cross-over rate of the two projects.

B. What is the range of the discount rate (to calculate NPV) that A should be chosen; and what is the range of the discount rate that B should be chosen? (Describe how you found this answer)

Reference no: EM132497637

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