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Author Question: Fritz Walther, the CEO of Carl Walther Sportwaffen GmbH, is choosing between two mutually exclusive ... (Read 28 times)

Haya94

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Fritz Walther, the CEO of Carl Walther Sportwaffen GmbH, is choosing between two mutually exclusive projects: 1) the Walther PBJ; and 2) the Walther PPK. Both projects involve an investment of $100,000. The operating cash flows for each project are shown in the table. The opportunity cost of capital is 10%. The PBJ project has an IRR of 11.65% and the PPK project has an IRR of 12.27%. Which project should Fritz choose (and why)?

YearPBJPPK
0-100,000-100,000
140,00090,000
280,00025,000

◦ Choose the PPK project because its IRR is greater.
◦ Choose the PPK because its NPV is higher.
◦ Choose the PBJ because its NPV is higher.
◦ Choose the PPK because it generates more operating cash flows.
◦ Choose either because they both have the same NPV.


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Marked as best answer by Haya94 on Apr 25, 2021

succesfull

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Haya94

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Reply 2 on: Apr 25, 2021
:D TYSM


bitingbit

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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