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    IRR Rate - The budget committee has received the following

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    4. The budget committee has received the following projects. They are mutually exclusive. The Company uses 10% as the rate of return.

    Year Project A Project B
    0 - 30,000 - 60,000
    1 10,000 10,000
    2 10,000 10,000
    3 10,000 20,000
    4 10,000 20,000
    5 5,000 30,000
    Total +20,000 +40,000
    NPV +7,910 +15,820

    What is the IRR for each?

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    IRR Rate
    4. The budget committee has received the following projects. They are mutually exclusive. The Company uses 10% as the rate of return.

    Year Project A Project B
    0 - 30,000 - 60,000
    1 10,000 10,000
    2 10,000 ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer the IRR for each project.

    $2.19

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