Calculate the IRR of the differential cash flows

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Question - Project Alpha and Beta have 4 year timelines. Project Alpha has an initial investment of 100,000 and cash inflows of 60,000, 50,000, 40,000 and 40,000. Project Beta has an initial investment of 75,000 and cash inflows of 50,000, 40,000, 30,000 and 30,000. Calculate the IRR of the differential cash flows between the two projects at which the company will be indifferent.

Reference no: EM133131150

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