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4. Suppose your firm was considering a project (Project A) with the following properties: Initial cost of $500,000 Yearly maintenance cost of $20,000 Yearly revenue

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4. Suppose your firm was considering a project (Project A) with the following properties: Initial cost of $500,000 Yearly maintenance cost of $20,000 Yearly revenue generated of $100,000 10-year life of the project a. What is the internal rate of return on the project? b. If you had a second option for a project (Project B) with an initial cost of $350,000 and a 12% rate of return for 10 years, which project should you firm pursue if your firm's MARR is i. 2% ii. 8% iii. 11%

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