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A firm utilizes a strategy of capital rationing, which is currently limited at $ 3 7 5 , 0 0 0 and is considering the
A firm utilizes a strategy of capital rationing, which is currently limited at $ and is considering the following two projects:
Project A has a cost of $ and the following cash flows: year :$; year :$; and year :$
Project B has a cost of $ and the following cash flows: year $; year $; and year $
Using a cost of capital, which project should the firm choose?
can you show your work step by step please
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