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A firm with a cost of capital of 13.5 percent is evaluating three capital projects. The internal rates of return are as follows: Project 1

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A firm with a cost of capital of 13.5 percent is evaluating three capital projects. The internal rates of return are as follows: Project 1 2 3 The firm should Internal Rate of Return 12% 15 13 OA. accept Project 2, and reject Projects 1 and 3 OB. accept Project 3, and reject Projects 1 and 2 OC. accept Project 1 and 2, and reject Project 3 OD. accept Project 1, and reject Projects 2 and 3 ACCE

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