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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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