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Consider the following two projects: Project Year 0 Cash Flow Year 1 Cash Flow Year 2 Cash Flow Year 3 Cash Flow Year 4 Cash

Consider the following two projects:

Project

Year 0

Cash Flow

Year 1

Cash Flow

Year 2

Cash Flow

Year 3

Cash Flow

Year 4

Cash Flow

Discount Rate

A

-100

40

50

60

N/A

.15

B

-73

30

30

30

30

.15

Assume that projects A and B are mutually exclusive. The correct investment decision and the best rational for that decision is to:

Group of answer choices

a.invest in project A since NPVB < NPVA.

b.invest in project B since IRRB > IRRA.

c.invest in project B since NPVB > NPVA.

d. invest in project A since NPVA > 0

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