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Capital Budgeting Techniques : A real estate development company is evaluating two investment projects. Project A requires an initial investment of $500,000 and has a
Capital Budgeting Techniques: A real estate development company is evaluating two investment projects. Project A requires an initial investment of $500,000 and has a net present value (NPV) of $100,000. Project B requires an initial investment of $700,000 and has an internal rate of return (IRR) of 12%. Compare the two projects and recommend which one the company should undertake.
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