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Given the data on two mutually exclusive projects in the table below, which project should you accept? 3 0 1 2 Cash flows: Project (A)

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Given the data on two mutually exclusive projects in the table below, which project should you accept? 3 0 1 2 Cash flows: Project (A) (20,000) 10,000 17,000 11,000 Cash flows: Project (B) (25,000) 15,000 14,000 15,000 Hurdle rate = 5% NPV (A) = $14,446 NPV (B) = $14,942 IRR (A) = 39.33% IRR (B) = 34.67% Neither project is acceptable. Project A because it has a greater IRR. O Project B. It is the only acceptable project. Project B because its has the greater NPV

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