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A firm has only $10,000 to invest and must choose between two projects. Project A returns $12,500 after a year while project B pays $15,800

A firm has only $10,000 to invest and must choose between two projects. Project A returns $12,500 after a year while project B pays $15,800 after three years. If management wants to earn 10 percent on an investment, which alternative should be selected based on the present value of the cash inflows?

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