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
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 Net Present Value

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