Compute the internal rate of return for project

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Two mutually exclusive investment projects have the following forecasted Cash flows:

Year Project a Project B

0 -$20,000 -$20,000

1 $10,000 0

2 $10,000 0

3 $10000 0

4 $10000 0

a) Compute the internal rate of return for each project

b) Compute the net present value for each project if the firm has a 10% cost of capital

c) Which project should be adopted? Why?

Reference no: EM133072503

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