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e32 Project A has an initial cost of $80,000 and provides cash inflows of $34,000 a year for three years. Project B has an initial
e32
Project A has an initial cost of $80,000 and provides cash inflows of $34,000 a year for three years. Project B has an initial cost of $80,000 and produces a cash inflow of $114,000 in year 3. The projects are mutually exclusive. Which project(s) should you accept if the discount rate is 11.7%? What if the discount rate is 13.5%? Multiple Choice Accept A as it always has the higher NPV Accept B as it always has the higher NPV. O O Accept B at 117% and A at 13.5%. Multiple Choice Accept A as it always has the higher NPV. Accept B as it always has the higher NPV. Accept B at 11.7% and A at 13.5%. Accept A at 11.7% and B at 13.5%. Accept A at 11.7% and neither at 13.5% Step by Step Solution
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