Better Health, Inc. is evaluating two investment projects, each of which requires an up-front expenditure of...

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Accounting

Better Health, Inc. is evaluating two investment projects, eachof which requires an up-front expenditure of $2.5 million. Theprojects are expected to produce the following net cash inflows:Year Project A Project B 1 750,000 2,000,000 2 1,250,000 1,250,0003 2,000,000 750,000 a. What is each project's IRR? Project A =IRR(C11: b. What is each project's NPV if the cost of capital is10%?

Attention Chegg Tutor: There is a similar answer onlinein Chegg, but the excel formula doesn't make sense. So please donot copy and paste the answer to answer this question. I am reallytrying to understand how the answer came about. please show allwork.

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IRR is the rate of return at which if discount the future inflow of a project the total of pv of all inflows becomes equal to pv of all outflows or in other words we can say that npv becomes zero CALCULLATION OF IRR OF PROJECT A HOW SOLVED for getting the IRR we have discounted the inflow of project A at different rate of reture ie 30 40 and 45 from this I comes to know that NPV of Project A    See Answer
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