(Answered)-What is the interest rate at which the decision

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Yonan Inc. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and notrepeatable.What is the interest rate at which the decision to take project L (or S) based on NPV will contradict the decision based on IRR method? Calculate the cross rate and explain how the cross rate influence your decision to take project L or S based on NPV vs. IRR method?YEAR: PROJECT S PROJECT L 0 -2050 -4300 1 740 1500 2 750 1518 3 760 1536 4 770 1600 MUST SHOW WORK IN EXCEL AND EXPLAIN.

 

Solution ID:10036761 | Question answered on 16-Oct-2016

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