Company RH is considering two investments with 1-year lives. The more expensive of the two...
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Company RH is considering two investments with 1-year lives. The more expensive of the two is the better and will produce more savings. Assume these projects are mutually exclusive and that the required rate of return is 10 percent. Given the following free cash flows: Calculate the NPV for each project. Calculate the Pl for each project. Calculate the IRR for each project. If there is no capital-rationing constraint, which project should be selected? If there is a capital- rationing constraint, how should the decision be made
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