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Consider two projects. The first project pays benefits of $85 today and nothing else. The second project pays nothing today, nothing one year from now,

Consider two projects. The first project pays benefits of $85 today and nothing else. The second project pays nothing today, nothing one year from now, but $104 two years from now.

a.Which project would be preferred if the discount rate were 0%?

b.What if the rate increased to 10%?

c.Find the Internal Rate of Return.

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