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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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