A company is considering two mutually exclusive projects,A and B Project A requires an initial investment of $200, followed by cash flows of $185, $40, and $15.Project B requires an initial investment of $200, followed by cash flows of $0, $50, and $230.What is the IRR of the project that is best for the company's shareholders? The firm's cost of capital is 10 percent.
A) 15.45 percent
B) 15.12 percent
C) 12.71 percent
Correct Answer:
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