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Better Health, Inc. is evaluating two investment projects, each of which requires an up-front expenditure of $2.8 million. The projects are expected to produce the

Better Health, Inc. is evaluating two investment projects, each of which requires an up-front expenditure of $2.8 million. The projects are expected to produce the following net cash inflows:

Year Project A Project B

0 -$2,800,000 -$2,800,000

1 $1,100,000 $1,600,000

2 $1,500,000 $1,500,000

3 $1,800,000 $900,000 ------------------------------------------------------------

Question: What is project A's IRR? (Just number, no other signs such as "$" or "%," round to two digits after decimal point)

Question: What is project B's NPV if the cost of capital is 10 percent? (Just number, no other signs such as "$" or "%," round to an integer, no decimal point)

Question: Which one would you buy? (write either "A" or "B")

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