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7. Consider the following two mutually exclusive projects: If you require a return of 15 percent, which project should you choose? Year Cash Flow (A)
7. Consider the following two mutually exclusive projects: If you require a return of 15 percent, which project should you choose?
| Year | Cash Flow (A) | Cash Flow (B) |
| 0 | -$300,000 | -40,000 |
| 1 | 20,000 | 19,000 |
| 2 | 50,000 | 12,000 |
| 3 | 50,000 | 18,000 |
| 4 | 390,000 | 10,500 |
| March Choice (X) | ??? | ??? |
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Options Futures And Other Derivatives
Authors: John C. Hull
4th Edition
0130224448, 9780130224446
