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IV. Calculation (Please keep two decimal fraction) 1. Consider the following two mutually exclusive projects: I Year Cash Flow (A) Cash Flow (B) -$59,600 -$22,400

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IV. Calculation (Please keep two decimal fraction) 1. Consider the following two mutually exclusive projects: I Year Cash Flow (A) Cash Flow (B) -$59,600 -$22,400 $21,200 $13,400 $44,500 $11,400 $11,700 $4,500 The required return is 16 percent for both projects. Should the two projects be accepted when using NPV rule to estimate these investments? (10 points) 2 3

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