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1.Capital budget analysis of mutually exclusive projects A and B Yields the following: Project AProject B IRR18%22% NPV$270,000$255,000 Payback Period2.5 Yrs2.0 Yrs Management should choose:

1.Capital budget analysis of mutually exclusive projects A and B Yields the following:

Project AProject B

IRR18%22%

NPV$270,000$255,000

Payback Period2.5 Yrs2.0 Yrs

Management should choose:

A.Project B because most excutives prefer the IRR method

B.Project B because Two out of three methods choose it

C.Project A because NPV is the best method

D.Either project because the results arent consistent

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