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A firm has only $10,000 to invest and must choose between two projects. Project A returns $12,400 after a year while project B pays $15,609

A firm has only $10,000 to invest and must choose between two projects. Project A returns $12,400 after a year while project B pays $15,609 after three years. If management wants to select the investment with the higher return, which alternative should be chosen?

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