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30. Consider 2 mutually exclusive projects of different life spans with the following information: Project A: Amount of Cash flows $150 5300 $400 Year 2

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30. Consider 2 mutually exclusive projects of different life spans with the following information: Project A: Amount of Cash flows $150 5300 $400 Year 2 3 Initial cash outlay = 500 Required rate of return-10% Project B: Year Amount of cash flows $200 $600 2 Initial cash outlay = 500 Required rate of return-10% What are the NPVs of these two expanded projects by using replacement chain method respectively, and which project should we choose? A) NPVexpanded A $184.82, NPVexpanded B= $177.69, choose A B) NPVexpanded A = $323.68, NPVexpanded B-$445.90; choose B C) NPVexpanded A $699.34, NPVexpanded $1200.63; choose B D) NPVexpanded A = $298.34, NPVexpanded B-$445.90; choose A

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