Compare the irrs of the two projects

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Reference no: EM131495466

A firm is considering two projects both with a life of five years. Project LUCKY costs $22,000 and after tax cash flows will be $6,000 annually. Project COLT will cost $24,000 and return after tax cash flows of $5,000; $6,000; $7,000; $8,000 and $9,000. The corporation’s required rate of return is 10% Compare the IRRs of the two projects.

Reference no: EM131495466

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