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Consider the following two mutually exclusive projects: Year 1 = 0 MH 0 Cash Flow (A) -$380,000 48 , 68,000 68,000 443,000 Cash Flow (B)

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Consider the following two mutually exclusive projects: Year 1 = 0 MH 0 Cash Flow (A) -$380,000 48 , 68,000 68,000 443,000 Cash Flow (B) -$ 59,000 30,000 25 , 22,500 17,600 3 4 Whichever project you choose, if any, you require a 15% return on your investment. d-1. What is the IRR for each project? (Round the final answers to 2 decim IRR % Project A Project B % d-2. If you apply the IRR criterion, which investment will you choose? O Project A O Project B e-1. What is the profitability index for each project? (Do not round intermed places.) Profitability Index Project A Project B

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