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7-4. Santa Clara Corporation is considering investments T and U. Initial costs and year-end cash flows follows. Investment T has a life of 3 years

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7-4. Santa Clara Corporation is considering investments T and U. Initial costs and year-end cash flows follows. Investment T has a life of 3 years and investment U has a life of 4 years. The limiting resource that caused the two investments to be mutually exclusive cannot be reused. The required return is 10 percent, which investment should be chosen? Why? Year 0 1 2 3 4 50,000 25,000 25,000 25,000 U -65,000 25,000 25,000 25,000 25,000 7-5. For the mutually exclusive investments described in problem 4, which investment should be chosen if the constraining resource can be reused at the end of either investment's life? Why

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