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Following is information about two independent projects that a company is evaluating: Capital Budget Technique Project X ProjectY Net present value $5,000 $4,950 Internal rate

Following is information about two independent projects that a company is evaluating:

Capital Budget Technique Project X ProjectY

Net present value $5,000 $4,950

Internal rate of return 15.5% 17.0%

Discount payback period 5.1 years 4.6 years

(a) which projects(s) should be chosen? Explain why? AND(b) What can be concluded about the company's required rate of return, r?

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