Garage Inc., has identified the following two mutually exclusive projects (mutually exclusive means it can...
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Accounting
Garage Inc., has identified the following two mutually exclusive projects (mutually exclusive means it can only choose one, not both): Year Cash flow (A) Cash flow (B) 0 -$29,000 -$29,000 1 14,400 4,300 2 12,300 9,800 3 9,200 15,200 4 5,100 16,800 a. What is the IRR for each project? Should the firm pick the project with the higher IRR?
b. If the required return in 11%, what is the NPV for each project?
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