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#1: The table below provides the estimated end-of-year net cash flows that would be received from alternative projects Red and Blue for an investment of

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#1: The table below provides the estimated end-of-year net cash flows that would be received from alternative projects Red and Blue for an investment of $200,000. Year 4 Project Red Project Blue Year 1 $40,000 $90,000 Year 2 $60,000 $70,000 Year 3 $80,000 $50,000 $68,000 $30,000 (a) Find the NPV of each project if the cost of capital is 4.5%. (b) In part (a), which project is better? (e) Find the NPV of each project if the cost of capital is 6.5%. (d) In part (c), which project is better

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