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Answer with full working out please Question 1 The net cash flows associated with projects are as follows: 5 Year 1 2 3 (1,500) (600)

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Question 1 The net cash flows associated with projects are as follows: 5 Year 1 2 3 (1,500) (600) 550 A 550 550 550 550 B 240 240 240 240 240 The required rate of return for the projects is 10.00%. Using marginal analysis and assuming that the projects were mutually exclusive, determine which investment is preferred and determine the rate of return which will generate the same NPV for the two projects

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