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What can be concluded about company required rate of return

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Reference no: EM132699454

Problem - Following is information about two independent projects that a company is evaluating:

Capital Budgeting Technique

Project X

Project Y

Net present value

$5,000

$4,950

Internal rate of return

15.5%

17.0%

Discounted payback period

5.1 years

4.6 years

Required -

(a) Which project(s) should be chosen? Explain why.

(b) What can be concluded about the company's required rate of return, r?

Reference no: EM132699454

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