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Comparing capital budgeting tools: Capital budgeting analysis of mutually exclusive projects A and B yields the following. What project should management choose? Explain why. Project

Comparing capital budgeting tools: Capital budgeting analysis of mutually exclusive projects A and B yields the following. What project should management choose? Explain why.

Project A Project B
IRR 19.00% 24.00%
NPV $385,000 $350,000
Payback Period 2.8 years 2.2 years

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