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ABC Ltd. Plans to invest in two mutually exclusive projects, A and B, each with a capital outlay of $240, 000 and 11% required rate

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ABC Ltd. Plans to invest in two mutually exclusive projects, A and B, each with a capital outlay of $240, 000 and 11% required rate of return. The estimated net cash flows for the project are presented in the table below. Cash Flow (S) Year Project A Project B 140 000 20000 40 000 80 000 60 000 60000 4 20 000 100 000 5 20 000 180 000 Determine the NPV of both projects. Show all working steps a. b. Which project should be selected and why? Suppose the intemal rate of return of both projects are: A-1 5.78%; B project should be selected and why? Explain. 14. 19%. Which c

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