(Using NPV for mutually exclusive projects) You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows:

If the appropriate discount rate on these projects is 10 percent, which would be chosen and why?

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Year Project A Cash Flow Project B Cash Flow 0 $(100,000) $(100,000) 1 33,000 0 2 33,000 0 3 33,000 0 45 33,000 0 33,000 220,000