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What is the npv of project at cost of? capital

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Reference no: EM132651152

You are considering the following two projects and can only take one. Your cost of capital is 11.4%. The cash flows for the two projects are as follows (please refer to the link below)? ($ million):

https://ibb.co/4mYwD5W

a. What is the IRR of each? project?

b. What is the NPV of each project at your cost of? capital?

c. At what cost of capital are you indifferent between the two? projects?

d. What should you? do? (Choose an option below)

A. You should invest in project A?, as it has the higher NPV.

B. You should invest in project B?, as it has the higher IRR.

C. You should invest in project B?, as it has the higher NPV.

D. You should invest in project A?, as it has the higher IRR.

Reference no: EM132651152

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