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2. The director of Project Development has asked you (a financial consultant) to analyze two proposed capital investments, Project A (To build an new building)

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2. The director of Project Development has asked you (a financial consultant) to analyze two proposed capital investments, Project A (To build an new building) and Project B (To improve existing building). The projects are mutually exclusive. Each project has a cost of P10,000 (in millions) and the required rate of return for each project is 12%. The project's expected net cash flows are as follows: Which of the two project would you recommend? Explain and substantiate your answer completely

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