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Brown's Industries is considering a project requiring an initial investment of $200,000 followed by annual cash inflows of $45,000 for the next six...

Brown’s Industries is considering a project requiring an initial investment of $200,000 followed by annual cash inflows of $45,000 for the next six years. A second six-year project has an initial outlay of $325,000. 

a.        How much would the second project have to generate in annual cash flows to have the same IRR as the first? 

b.        If Brown’s cost of capital is 8%, how much would the second project have to generate in annual cash flows to have the same NPV as the first project.

          Explain your answers.

a)First Project:Year0123456IRR -2000004500045000450004500045000450009.31% Let Annual cash flow be X for second project to be IRR of 9.31%Outflow = 325000Let outflow = Inflow...
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