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Consider the following cash flows on three mutually exclusive projects: 1 Year 0 1 Project A $50,000 30,000 25,000 20,000 Project B $65.000 29,000 38,000
Consider the following cash flows on three mutually exclusive projects: 1 Year 0 1 Project A $50,000 30,000 25,000 20,000 Project B $65.000 29,000 38,000 41,000 Project C -$55,000 28,000 27,000 33,000 M The cash flows of Project A are expressed in real terms, whereas those of Project B and Project Care expressed in nominal terms. The appropriate nominal discount rate is 15 percent and the expected inflation rate is 4 percent. Of the three mutually exclusive projects, you should choose Project
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