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As the director of capital budgeting for Denver Corporation, you are evaluating two proposals for a computerized inventory system: Year 1 Proposal X Proposal Z

As the director of capital budgeting for Denver Corporation, you are evaluating two proposals for a computerized inventory system: Year 1 Proposal X Proposal Z 0 -$40,000 -$20,000 1 50,000 10,000 2 40,000 -30,000 3 10,000 70,000 If Denvers required rate of return is 15 percent, what do you recommend? Why?

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