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Blossom Corporation is considering two alternative investments in excavating equipment. Investment Arequires an initial investment of $184,000, has positive cash flows of $27,100 per year,
Blossom Corporation is considering two alternative investments in excavating equipment. Investment Arequires an initial investment of $184,000, has positive cash flows of $27,100 per year, and has an estimated salvage value of $20,600. Investment Brequires an initial investment of $233,800, has positive cash flows of $32,600 per year, and has an estimated salvage value of $18,800. Each piece of equipment is expected to have a 12-year useful life. Use a financial calculator to determine the internal rate of return of each project to decide which is more desirable. (Round answers to 2 decimal places, e.g. 9.74%.) Investment A Investment B Internal rate of return % %
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