percent depending on their financing plan. All three projects cost the same at $500,000. Expected cash flow streams are shown in the following table. Which projects would be accepted at a discount rate of 14.8 percent? What if the discount rate was 13.6 percent?

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Year Project 1 Project 2 Project 3 1 $ 0 $ 0 $245,125 2 125,000 0 212,336 3 150,000 500,000 112,500 4 375,000 500,000 74,000