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Author Question: Moerdyk & Co. is considering Projects S and L, whose cash flows are shown below. These projects are ... (Read 41 times)

gboileau

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Moerdyk & Co. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. If the decision is made by choosing the project with the higher IRR, how much value will be forgone? Note that under certain conditions choosing projects on the basis of the IRR will not cause any value to be lost because the one with the higher IRR will also have the higher NPV.

WACC:13%    
 

0

1

2

3

4

CFS

–$1,065

$660

$460

$260

$60

CFL

–$1,065

$110

$310

$510

$710


–$35.04


–$32.28


$0.00


$25.70



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Marked as best answer by gboileau on Aug 7, 2023

Khareemom14

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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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gboileau

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)


nanny

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Reply 3 on: Yesterday
Wow, this really help

 

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