Consider two investment​ projects, which both require an upfront investment of $8 ​million, and both of which pay a constant positive amount each year for the next 11 years. Under what conditions can you rank these projects by comparing their​ IRRs? ​(Select the best choice​ below.)     A. Ranking by IRR will work in this case so long as the​ projects' cash flows do not increase from year to year.   B. Ranking by IRR will work in this case so long as the projects have the same risk.   C. There are no conditions under which you can use the IRR to rank projects.   D. Ranking by IRR will work in this case so long as the​ projects' cash flows do not decrease from year to year.

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A: Internal rate of return can be defined as the capital budgeting technique which brings down the net…

Q: Use the NPV method to determine whether Juda Products should invest in the following​ projects:   •…

A: Solution:-1 Calculation of NPV of each​ project as follows:-

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A: The correct option is option c.

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A: Net Present Value (NPV) refers to the difference between this value of money inflows and cash…

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A: Information Provided: Cash Inflows = $45000 Cost of capital = 14% Initial Investment = $(309,600)

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A: Excel Spreadsheet:

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A:

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A: Formulas:

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Q: IRRs

A: IRR stands for internal rate of return is a process of computing the percentage of return over…

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.