Business
Business, 05.11.2019 00:31, connorhoran05

Thompson manufacturing is considering two investment proposals. the first involves a quality improvement project, and the second is about an advertising campaign. the cash flows associated with each project appear below: - quality improvement advertising campaign initial cash outflow $100,000 $100,000 cash inflows year 1 10,000 80,000 year 2 30,000 45,000 year 3 125,000 10,000 suppose the hurdle rate of the firm is 10%. calculate the cash flows of the "incremental project" by subtracting the cash flows of the second project from the cash flows of the first project. what is the irr of the incremental project?

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