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10. Project A would cost $64,000 today and have the following other expected cash flows: $32,000 in 1 year, $27,000 in 2 years, $19,000 in
10. Project A would cost $64,000 today and have the following other expected cash flows: $32,000 in 1 year, $27,000 in 2 years, $19,000 in 3 years, and $9,000 in 4 years. The cost of capital for project A is 12.77 percent. Project B would cost $87,000 today and have the following other expected cash flows: $53,000 in 1 year, $21,000 in 2 years, $23,000 in 3 years, and $13,000 in 4 years. The cost of capital for project B is 14.36 percent. Statement 1: Project A would be accepted based on the projects net present value (NPV) and the NPV rule Statement 2: Project B would be accepted based on the projects internal rate of return (IRR) and the IRR rule
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