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Calculate the Net Present Value (NPV) of Project A. Choosing between Discrete Alternatives in a Dynamic Setting Consider two mutually exclusive projects A and B

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Calculate the Net Present Value (NPV) of Project A.

Choosing between Discrete Alternatives in a Dynamic Setting Consider two mutually exclusive projects A and B expected to accrue the following stream of net benefits each year. Assume the relevant discount rate is 5%. Note that project A covers a longer time horizon than project B. t Project A Project B 0 -10 - 10 1 - 10 - 10 2 - 10 85 3 100

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