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JK Products is evaluating an investment in either of two competing projects that will allow the company to eliminate a production bottleneck and meet the
JK Products is evaluating an investment in either of two competing projects that will allow the company to eliminate a production bottleneck and meet the growing demand for its products. The company's engineering department narrowed the alternatives down to two -MD and HD. A project specialist developed the following estimates of cash flows for MD and HD over the relevant six-year time horizon. The company has an 11% required return and views these projects as equally risky.
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