Two projects are being considered by a firm. Project A has an initial outlay of $550,000, and returns of $90,000 each year for 10 years. Project B has an initial outlay of $450,000, and returns of $75,000each year for 10 years. Based on the IRR, which project should the company select? If the company's cost of capital is 12%, which project should the company select?

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The Answer of Two projects are being considered by a firm. Project A has an initial outlay of $550,000, and returns of $90,000 each year for 10 years. Project B has an initial outlay of $450,000, and returns of $75,000each year for 10 years. Based on the IRR, which project should the company select? If the company's cost of capital is 12%, which project should the company select?

Two Projects Are Being Considered by a Firm