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Consider two projects. The first project pays benefits of $90 today and nothing else. The second project pays nothing today, nothing one year from now,
Consider two projects. The first project pays benefits of $90 today and nothing else. The second project pays nothing today, nothing one year from now, but $100 two years from now. If the discount rate is 0%, show the net present benefit of each project and which one would be preferred? What if the rate increased to 10% (show the net present benefit as well)?
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