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A firm with a cost of capital of 10 percent is considering the following mutually exclusive projects: Year 0 1 2 3 4. 5 Project

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A firm with a cost of capital of 10 percent is considering the following mutually exclusive projects: Year 0 1 2 3 4. 5 Project A (S450) 60 60 70 250 250 Project B (5635) 300 300 75 75 60 According to the MIRR criterion, which project should be accepted? According to the PI criterion, which project should be accepted? Given all the information above, if there is no capital rationing, which project should be chosen and why? (h) Given all the information above, if there is severe capital rationing, which project should be chosen and why

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