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36. Chingos and Daughters Construction is considering three investment propos- als: A, B, and C. Proposals A and B are mutually exclusive, and Proposal Cis

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36. Chingos and Daughters Construction is considering three investment propos- als: A, B, and C. Proposals A and B are mutually exclusive, and Proposal Cis contingent on proposal B. The cash flow data for the investments over a 10-year planning horizon are given below. The company has a budget limit of $1 million for investments of the type being considered currently. MARR = 15%. NCF(B) $600,000 $800,000 $470,000 10 years $70,000 $130,000 $65,000 $400,000 $600,000 $260,000 $270,000 NCF(A) NCF(C) Initial investment Planning horizon Salvage values Annual receipts Annual disbursements 10 years 10 years $130,000 $70,000 Determine which alternative should be selected using the internal i return method. rate df

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