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NPV Your division is considering two investment projects, each of which requires an up-front expenditure of...

NPV

Your division is considering two investment projects, each of which requires an up-front expenditure of $23 million. You estimate that the investments will produce the following net cash flows:

Year Project A Project B
1 $  5,000,000 $20,000,000
2 10,000,000 10,000,000
3 20,000,000 8,000,000
  1. What are the two projects' net present values, assuming the cost of capital is 5%? Round your answers to the nearest dollar.
    Project A $
    Project B $

    What are the two projects' net present values, assuming the cost of capital is 10%? Round your answers to the nearest dollar.
    Project A $
    Project B $

    What are the two projects' net present values, assuming the cost of capital is 15%? Round your answers to the nearest dollar.
    Project A $
    Project B $
  2. What are the two projects' IRRs at these same costs of capital? Round your answers to two decimal places.
    Project A     %
    Project B     %

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