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A firm must take one of the following projects (required for safety): Cost of each project are given below(thousands $). Cost of capital of the
A firm must take one of the following projects (required for safety): Cost of each project are given below(thousands $). Cost of capital of the firm is 10%.
| Year | 0 | 1 | 2 | 3
| 4 |
| Project A | 1000 | 240 | 240 | 240 | |
| Project B | 1000 | 200 | 200 | 200 | 200 |
| A should be chosen | ||
| B should be chosen | ||
| We cannot say which project should be chosen. | ||
| Both should be chosen.
|
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