How to solve this type of question any one please
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The question has asked us to find out the Fisherian Rate of Return. Thereby, take a difference between the cash flow of the two projects ( CF0 of Project 1 – CF0 of Project 2, CF1 of Project 1 – CF1 of Project 2) and calculate the IRR. What you get is the fisherman rate of return which would make the NPV same for both the projects.
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Thanku . Understood how to solve
In these types of questions, there are 2 approaches
Thanku so much specially for the shortcut method I didn’t know about that method