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Consider the following two projects: Project Year 0 Year 1 Year 2 Year 3 Year 4 Discount Rate 0.13 Cash Flow Cash Flow Cash Flow

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Consider the following two projects: Project Year 0 Year 1 Year 2 Year 3 Year 4 Discount Rate 0.13 Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow 50 30 N/A 30 60 30 40 30 -100 73 0.13 Assume that projects A and B are mutually exclusive. The correct investment decision and the best rationale for that decision is to O A. invest in project A, since NPVA>0 0 B. invest in project A, since NPVB NPVA. 0 D. invest in project B, since lRRB-RRA

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