Solution) Just One Inc has two mutually exclusive investment projects P and Q shown below. Suppose the market
Question: Just One Inc has two mutually exclusive investment projects P and Q shown below. Suppose the market interest rate is 10 percent.
Project initial investment year 1 year 2 irr npv (r=10%)
P -$200.00 $140.00 $128.25 22.4% $33.26
Q _$100.00 $80.00 $56.25 25.0% 19.21
The rankings of the projects differs, depending on the use of IRR or NPV measures. Which project should be selected? Why is the IRR ranking misleading?
Price: $2.99
Solution: The solution consists of 1 page
Deliverables: Word Document
Deliverables: Word Document
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