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An analyst has gathered the following data about a company with a 12 percent cost of capital: Project A Project B Cost $15,000 $20,000 Life
An analyst has gathered the following data about a company with a 12 percent cost of capital: Project A Project B Cost $15,000 $20,000 Life 5 years 4 years Cash inflows $5,000/year $7,500/year A company has two mutually exclusive projects. What should the company do? A. Accept A, Accept B. B. Reject A, Accept B. C. Reject A, Reject B. D. Accept A, Reject B
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