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Consider the following two mutually exclusive projects: Year 0 1 2 3 4 CF (A) -100,000 40,000 20,000 20,000 30,000 CF (B) -40,000 19,000 12,000
Consider the following two mutually exclusive projects: Year 0 1 2 3 4 CF (A) -100,000 40,000 20,000 20,000 30,000 CF (B) -40,000 19,000 12,000 18,000 10,500 Whichever project you choose, if any, you require a 15 percent return on your investment. If you apply the NPV criterion, which investment will you choose?Required to answer. Single choice.
project a or b?
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