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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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- Spring '08