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Company XYZ is considering two mutually exclusive investment projects. Project A requires an initial investment of $200,000 and generates cash inflows of $60,000 per year
Company XYZ is considering two mutually exclusive investment projects. Project A requires an initial investment of $200,000 and generates cash inflows of $60,000 per year for 5 years. Project B requires an initial investment of $250,000 and generates cash inflows of $70,000 per year for 5 years. Calculate the net present value (NPV) for each project and recommend the project with the higher NPV.
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