Problem 9.12 – NPV versus IRR (Bruin, Inc.)

Fundamentals of Corporate Finance

Ross, Westerfield, and Jordan

13th Edition

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Difficulty – Hard

With the given cash flows, find the IRR and which project to accept. Then, with the required return, find the NPV for both projects and which project should be chosen. Lastly, find what discount rate would they be indifferent between the two projects.

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