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Your hurdle rate is 15%. The first project is a seven year project with an expected IRR of 15.2% and the second project is a five year project with an IRR 15.3%. Which project would you fund? Why would you choose that project over the other? Would you choose to fund both if you could? Why or why not?
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Solution Summary
This solution details which projected should be funded and gives a justification why.
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I would chose the second project as it has a higher IRR in a shorter time frame [so, it will ...
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- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
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