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A Company has been offered the possibility of entering two projects: a) A five year project that consists on an initial investment of 150,000 EUR

A Company has been offered the possibility of entering two projects: a) A five year project that consists on an initial investment of 150,000 EUR and a set of 4 yearly investments of 40,000 EUR from year 1 onwards b) A six year project that consists on an initial investment of 150,000 EUR and a set of 5 yearly investments of 28,000 EUR from year 1 onwards. If the compound interest rate is 5%, which one would you choose and why?

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