A company is considering two projects. Project A requires an initial outlay of $350,000 and expected profits of $90,000 starting in year three until year 10. Project B requires an initial outlay of $200,000 and another $200,000 in two years. Expected profits are $100,000 starting in year three to year ten. Based on the IRR, which project should the company select? If the firm's cost of capital is 10%, which project should the company select? Based on both the IRR and the NPV's, which project should the company select?

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The Answer of A company is considering two projects. Project A requires an initial outlay of $350,000 and expected profits of $90,000 starting in year three until year 10. Project B requires an initial outlay of $200,000 and another $200,000 in two years. Expected profits are $100,000 starting in year three to year ten. Based on the IRR, which project should the company select? If the firm's cost of capital is 10%, which project should the company select? Based on both the IRR and the NPV's, which project should the company select?

A Company Is Considering Two Projects