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Consider the following two independent investment projects: Cash flows of project A: 0123 -130 100 50 5 Cash flows of project B: 012345 -130 90

Consider the following two independent investment projects:

Cash flows of project A: 0123

-130 100 50 5 Cash flows of project B:

012345

-130 90 40 40 40 40

If management only accepts projects that pay back in 3 years or less, according to the discounted payback period rule, which projects will be selected? Use a discount rate of 10%.

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