Consider two mutually-exclusive investments

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Consider two mutually-exclusive investments:

1. Initial cost is 22,000, with subsequent cash flows of 6,290 per year for 6 years.

2. Initial cost is 17,500, and subsequent cash flows are 5,000 per year for 6 years.

Cost of capital is 12% for both investments.

Calculate NPV adn IRR for each investment, and decide which to recommend.

Reference no: EM132042624

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