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Let us assume Project A has cash flows of $2,000, +$200, +$3,700 and Project B has cash flows of $2,000, +$2,000 and +$1,480. The two
Let us assume Project A has cash flows of $2,000, +$200, +$3,700 and Project B has cash flows of $2,000, +$2,000 and +$1,480. The two projects differ only in the timing of the cash inflows; their initial outlays and overall lives are similar. Both have a required rate of return of 9% per annum. Which project should be chosen and why?Show your work.
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