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Project X is expected to generate cash flows of $5,000 per year for 5 years and...

Project X is expected to generate cash flows of $5,000 per year for 5 years and its initial cost is $17,000. Project Y is mutually exclusive to Project S. Project Y costs $30,000, and its expected cash flows would be $8,750 per year for 5 years. If both projects have a WACC of 12%, what is the IRR of the better project?

a)12.00%

b)14.85%

c)13.65%

d)14.05%

e)14.40%

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Expert Solution

jeff jeffy answered 1 year ago
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