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7. Miles office supply is considering two mutually exclusive inventory management systems, each with five-year llves. Project A is an office computing system to facilitate
7. Miles office supply is considering two mutually exclusive inventory management systems, each with five-year llves. Project A is an office computing system to facilitate record-keeping, costing $20,000 and ylelding a CF of $6,540.22 per year. Project B is a fully automated system costing $100,000 with a CF of $29,832.94 per year. a. Calculate the IRR of each project and select the preferred project. b. Assuming that the opportunity cost of capital is 10 percent, which project is preferable
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