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( 2 ) Project Selection: Petit Industries has $ 1 0 0 , 0 0 0 to invest in one of the following two projects:

(2)

Project Selection: Petit Industries has $

100, 000

to invest in one of the following two projects:

The working capital needed for project B will be released at the end of six years for investment

elsewhere. Cerit Industries' discount rate is

14 % .

Based on net present value, which project is the better? And by how much?

You need to show detailed computations.

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