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John Petrucci is considering three possible expansion scenarios to expand his movie theater, named the Dream Theater. The scenarios are independent. The required rate of

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John Petrucci is considering three possible expansion scenarios to expand his movie theater, named the Dream Theater. The scenarios are independent. The required rate of return (cost of capital) is 12%. Which of the scenarios should he choose? Scenario A Scenario B $350,000 Scenario C $150.000 Initial Cost $250.000 $45.000 $55,000 $40.000 Net Present Value (NPV) Internal Rate of Return (IRR) 19.5% 16.096 21.0% All shree scenarios Scenarios A and Scenarios Scenario Scenano A

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