Comparing Investment Criteria. Consider the following cash flows of two mutually exclusive projects for Tokyo Rubber...

Comparing Investment Criteria. Consider the following cash flows of two mutually exclusive projects for Tokyo Rubber Company. Assume the discount rate for both projects is 8%

Year Deepwater Fishing New Submarine Ride

0 -$1,700,000 -$750,000

1 1,100,000 375,000

2 900,000 600,000

3 750,000 390,000

b) Based on the NPV, which project should be taken?

c) Based on IRR, which project should be taken?

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jeff jeffy answered 1 year ago

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