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Harris Corporation is considering the following two mutually exclusive projects with their projected cash flows: Year Project A Project B 0 ($10,000) ($10,000) 1 4,500

Harris Corporation is considering the following two mutually exclusive projects with their projected cash flows:

Year Project A Project B

0 ($10,000) ($10,000)

1 4,500 0

2 4,500 0

3 4,500 15,000

If the required return on these projects is 10 percent, which would be chosen and why?

Group of answer choices

Project A because of higher IRR

Project B because of higher NPV

Project B because of higher IRR

Project A because of higher NPV

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