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A eorripany that annually reviewil its investment oppontunities and ssiects approprinte capitat expendituren for the coming yoar is. presented with two projecta. called Project A

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A eorripany that annually reviewil its investment oppontunities and ssiects approprinte capitat expendituren for the coming yoar is. presented with two projecta. called Project A and Projoct B. Feat estimates indicate that the investrivent otitidy for Project A is 530.000 and for Project f in $1 millon. The projects are connidered to bo equaily risky. Project A is expected to. generate gatih inflows of 310,000 at the end of each year for. 2 yeara. Project B in expected to generate cant intionwa of 8700,000 at the end of the and internat rate of return (ifit) diffor in that Ifre cars be used fo rank inkitunity exctusive investment projecto, but Nfry oannot. internal ratie of ceturn. NPV is expressed as a percentage, while Ifth is expressed as a dollar amount

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