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Arvind Mills Ltd . is considering two mutually exclusive investment proposals for its expansion progrens Proposal A requires an initial investment of 7 , 5
Arvind Mills Ltd is considering two mutually exclusive investment proposals for its expansion progrens Proposal A requires an initial investment of and yearly cash operating costs of B requires an initial investment of and yearly cash operating costs of The life ds equipment used in both the investment proposals will be years, with no salvage value; depreciation is the straightline basis for tax purposes. The anticipated increase in revenues is per year in bobs investment proposals. The firm's tax rate is and its cost of capital is Which investment proposal should be undertaken by the company?
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