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Labeau Products, Ltd. of Perth, Australia has $35,000 to invest. The company is trying to decide between two alternate uses for the funds, as follows:
Labeau Products, Ltd. of Perth, Australia has $35,000 to invest. The company is trying to decide between two alternate uses for the funds, as follows: Labeau's discount rate for both projects is 8%. Required: (Ignore income taxes.) Which alternative would you recommend that the company accept? Show all computations using the net present value approach. Prepare separate computations for each project
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