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AA Companies has identified two mutually exclusive projects. Project A has cash flows of - $20,000, $5,000, $10,500, and $11,500 for Years O to 3,
AA Companies has identified two mutually exclusive projects. Project A has cash flows of - $20,000, $5,000, $10,500, and $11,500 for Years O to 3, respectively. Project B has a cost of $20,000 and annual cash inflows of $9,500, and $16,000 for Years 2 to 3, respectively. At what rate would you be indifferent between these two projects? A. 22.21 percent B. -26.54 percent C.-14.61 percent OD. 15.32 percent E. -21.01 percent An investment that provides annual cash flows of $32,100 for 7 years costs $98,500 today. At what rate would you be indifferent between accepting the investment and rejecting it? A. 21.48 percent B. 27.72 percent C. 19.10 percent D. 24.04 percent E. 26.19 percent
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