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3 Your company is faced with two investment opportunities: a) Invest R10 million in Project A, which will generate after-tax cash flows of R3,250,000 per

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3 Your company is faced with two investment opportunities: a) Invest R10 million in Project A, which will generate after-tax cash flows of R3,250,000 per annum over 4 years at a required rate of return of 10% per annum; or b) Invest R5 million in Project B. which will generate after-tax cash flows of R1,500,000 per annum over 5 years at a required rate of return of 10% per annum. Your task: - Calculate the Net Present Value for both Projects A and B; and - Conclude which project, at face value, appears to be the better financial investment

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