Which project is preferred if you rank by irr

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Reference no: EM131477014

Question: Your firm is considering two projects with the following cash flows:

a. If the appropriate discount rate is 12%, rank the two projects.

b. Which project is preferred if you rank by IRR?

c. Calculate the crossover rate - the discount rate r in which the NPVs of both projects are equal.

d. Should you use NPV or IRR to choose between the two projects?

Reference no: EM131477014

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