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Equipment A has a cost of shs 50,000,000 and net cash flows of shs 20,000,000 for year 1; 30,000,000 for year 2 and 10, 000,000 for year 3. The required rate of return for the project is 12% for both equipment. Equipment B will cost shs 500,000 and has an annual cash inflow of shs 300,000 for 2 years. Calculate the NPV and the IRR for the equipment.

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