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1. A company is choosing between two projects. The larger project has an initial cost of $100,000, annual cash flows of $30,000 for 5 years,

1. A company is choosing between two projects. The larger project has an initial cost of $100,000, annual cash flows of $30,000 for 5 years, and an IRR of 15.24%. The smaller project has an initial cost of $51,600, annual cash flows of $16,000 for 5 years, and an IRR of 16.65%. The projects are equally risky. Which one would you choose ? Why?

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