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Assume the firm can either take Project A or Project B. Project A will require the initial investment of $72,000 and will yield $16,000 at

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Assume the firm can either take Project A or Project B. Project A will require the initial investment of $72,000 and will yield $16,000 at Year 1,$16,500 at Year 2 , $21,000 at Year 3,$28,000 at Year 4, $27,000 at Year 5 , and $13,500 at Year 6 . Project B will require the initial investment of $78,000 and yield $15,000 at Year 1 , $16,000 at Year 2,$18,000 at Year 3,$21,000 at Year 4,$30,000 at Year 5 , and $36,000 at Year 6 . If the interest/discount rate that applies to both project is 10.1%. which of these two projects is a better option if the decision is made based on the Net Present Value (NPV) basis? Project A Project B There is no difference There is insuificient information fo make a decision Same facts above: what if the decision is made based on the Profitability Index'basis? Project A Project B There is no difference There is insufficient information to make a decision

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