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A Company Is Analyzing Two Mutually Exclusive Projects, S and L

Question 63

Multiple Choice

A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below: A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below: The company's required rate of return is 12 percent, and it can get an unlimited amount of funds at that rate.What is the IRR of the better project, i.e., the project which the company should choose if it wants to maximize the price of its stock? A) 12.00% B) 15.53% C) 18.62% D) 19.08% E) 20.46% The company's required rate of return is 12 percent, and it can get an unlimited amount of funds at that rate.What is the IRR of the better project, i.e., the project which the company should choose if it wants to maximize the price of its stock?


A) 12.00%
B) 15.53%
C) 18.62%
D) 19.08%
E) 20.46%

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