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10. You are going to choose one of two mutually exclusive investments. Investment A pays $35,000 a year for four years and has an initial
10. You are going to choose one of two mutually exclusive investments. Investment A pays $35,000 a year for four years and has an initial cost of $80,000. Investment B pays $60,000 a year for five years and has an initial cost of $170,000. If your required return is 13 percent, which investment should you choose and why? A. A; because it costs less initially B. A; because its IRR exceeds 13 percent C. A; because it has a higher IRR D. B; because its IRR exceeds 13 percent E. B; because it has a higher NPV
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