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Dorati Inc. is considering two mutually exclusive projects. Dorati used a 15% required rate of return to evaluate capital expenditure projects. If the two projects

  1. Dorati Inc. is considering two mutually exclusive projects. Dorati used a 15% required rate of return to evaluate capital expenditure projects. If the two projects have the costs and cash flows shown below, determine the NPV for each.

Year Project S Project T

0 -$70,000 -$100,000

1 $50,000 $60,000

2 $60,000 $70,000

3 $80,000

4 $90,000

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