Unformatted text preview: NPV ∆ = $39,162,393  $35,000,000 = $4,162,393. Inputs 2 35000000 4600000 0 I PV PMT FV N Output = 11.71 IRR ∆ = 11.71%. Since IRR ∆ > r, and since we should accept ∆ . This means accept the larger project (Project A). In addition, when dealing with mutually exclusive projects, we use the NPV method for choosing the best project. Answers and Solutions: 11  17...
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This note was uploaded on 07/13/2011 for the course FIN 4414 taught by Professor Staff during the Spring '08 term at University of Florida.
 Spring '08
 Staff

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