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IO PI IRR LIFE Project 1 $300,000 1.12 14.38% 15 years Project 2 $150,000 1.08 13.32% 6 years Project 3 $100,000 1.20 16.46% 3 years

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IO PI IRR LIFE Project 1 $300,000 1.12 14.38% 15 years Project 2 $150,000 1.08 13.32% 6 years Project 3 $100,000 1.20 16.46% 3 years Assume that the cost of capital is 12%. If the firm has unlimited capital and each project is independent, which project(s) should be accepted? Project 1 O Projects 1 and 2 Projects 1 and 3 O Projects 2 and 3 Projects 1, 2 and 3

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