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5. You have two investment options A and B. Which one should you go for? Negative cash flows are investments and positive cash flows are

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5. You have two investment options A and B. Which one should you go for? Negative cash flows are investments and positive cash flows are income. The rate of return is 5%. 0 1 2 3 4 A-5000 2000 2300 -300 2100 B 3000 1700 -1900 2200 2000 (a) What is the NPV of both investment options? (15 Marks] (b) Which investment is better? and why? [5 Marks]

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