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These are the cash flows for two projects. Calculate the NPV andIRR for both. Then select the best project according to the NPVmeasure. Use a WACC of 10% for both projects. The investments are 7for project 1, and 8 for project 2.Cash flows for project 1year1234cash4624Cash flows for project 2year1234cash3274Calculate the NPV for project 1. Remember to use 10% as theWACC.Calculate the IRR for project 1. Remember the WACC is 10%. Givethe answer in percent.Calculate the NPV for project 2, use a 10% WACC.Calculate the IRR for project 2, write the result inpercent.According to the NPV criterion, which is the best project toinvest in?
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