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Assume the firm can either take Project A or Project B. Project A will require the initial investment of $75,000 and will yield $15,000 at

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Assume the firm can either take Project A or Project B. Project A will require the initial investment of $75,000 and will yield $15,000 at Year 1,$16,000 at Year 2, $21,000 at Year 3,$30,000 at Year 4 , $38,000 at Year 5 , and $10,500 at Year 6 . Project B will require the initial investment of $81,000 and yield $15,000 at Year 1,$16,000 at Year 2,$20,000 at Year 3,$21,000 at Year 4,$30,000 at Year 5 , and $43,800 at Year 6 . If the interest/discount rate that applies to both project is 10.5%. 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 insufficient information to make a decision Question 10 2.5pts 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 insutficient information to make a decision

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