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A company has the option to invest in project A, project B, or neither (the projects are mutually exclusive, and the company has no other
A company has the option to invest in project A, project B, or neither (the projects are mutually exclusive, and the company has no other investment options). -Project A requires an initial investment of $50,000 today and provides cash flows of $12,000 a year for five years. -Project B requires a $87,500 investment today and will have cash flows of $10,000 a year for 4 years, with a final cashflow of $80,000 in year 5. -The firm's hurdle rate (discount rate) for these projects is 8%. Which project should be selected- A, B, or neither? O (a) Project A O (b) Project B O (c) Neither O No answer text provided
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