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2. From the table below Year Project A Project B 0 -100 -100 1 40 50 2 40 50 3 40 50 4 40 a)
2. From the table below
Year Project A Project B
0 -100 -100
1 40 50
2 40 50
3 40 50
4 40
a) If the opportunity cost of capital is 11% which of these projects is worth pursuing?
b) Which project would you choose if the opportunity cost of capital is 16%?
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