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9. Tara is evaluating two independent capital budgeting projects that have the following characteristics: Cash Flows Year Project Q Project R 0 $(4,000) S(4,000) 1
9. Tara is evaluating two independent capital budgeting projects that have the following characteristics: Cash Flows Year Project Q Project R 0 $(4,000) S(4,000) 1 0 3,500 2 5.000 1,100 If the firm's required rate of return is 8 percent, which project should be purchased? a. Both projects should be purchased. a. Neither project should be purchased. c. Project Q should be accepted, because its net present value (NPV) is higher than Project R's NPV. d. Project R should be accepted, because its net present value (NPV) is higher than Project Q's NPV. e. None of the above is a correct
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