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  3. you are choosing between two projects: a and b. th

You are choosing between two projects: A and B. The investment in Project A and...

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Finance

  1. You are choosing between two projects: A and B. The investment in Project A and Project B is $1 million and $2 million, respectively. The IRR for both projects is unique and equals to 20%.

Is the following statement true or false: for any discount rate between 0% and 20%, the NPV of Project B is twice as great as that of Project A. Carefully explain your answer.

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