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Capital budgeting analysis of mutually exclusive projects A and B yields the following: Project A Project B IRR 18% 22% NPV $270,000 $255,000 Payback Period

Capital budgeting analysis of mutually exclusive projects A and B yields the following:

Project A

Project B

IRR

18%

22%

NPV

$270,000

$255,000

Payback Period

2.5 yrs

2.0 yrs

Management should choose:

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