The projected cash flows for two mutually exclusive projects are as follows:
If the cost of capital is 10%, the decidedly more favorable project is:
A) project B with an NPV of $39,539 and an IRR of 19.9%.
B) project A with an NPV of $5,230 and an IRR of 10.8%.
C) project A with an NPV of $39,539 and an IRR of 10.8%.
D) project B with an NPV of $5,230 and an IRR of 19.9%.
Correct Answer:
Verified
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