Internal Rate of Return Projects A and B have the following cash flows: Year Project A Project B 0 2$1,000 2$2,000 1 C1A C1B 2 C2A C2B 3 C3A C3B a. If the cash flows from the projects are identical, which of the two projects would have a higher IRR? Why? b. If C1B 5 2C1A, C2B 5 2C2A, and C3B 5 2C3A, then is …
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