For the two projects below and using a discount rate of 12 percent, decide which one should

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For the two projects below and using a discount rate of 12 percent, decide which one should receive the investment funds.

Projected Projected Cash Flows, Year Cash Flows, ($) ($) - $325,000 - $285,000 Cost 138,000 112,000 225,000 188,000 240,

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
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