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a company is considering two separate mutually exclusive projects A and B. Project A requires an initial investment of 130,000$ and is expected to generate
a company is considering two separate mutually exclusive projects A and B. Project A requires an initial investment of 130,000$ and is expected to generate after tax cash flow of 18000$ per year forever. Porrect B requires an initial investment of 80000$ and is expected to generate after tax cash flow of 15000$ per year forever. Which of the following statement is correct?
- Select project b when the discount rate is 4%
- Select project b when the discount rate is 13%
- Select project a when the discount rate is 11%
- Select project b when the discount rate is 20%
- Select project a when the discount rate is 8%
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