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Let's say that your company is trying to choose between investing in Project A and investing in Project B; it can choose one, but not
Let's say that your company is trying to choose between investing in Project A and investing in Project B; it can choose one, but not both. The two projects require roughly the same investment to launch, (about $100,000) and have about the same life (5 years). Project A offers an estimated return of 12% per year, and Project B offers an estimated return of 10% per year. Could there be any rationale for deciding to go with Project B? If so, what might that rationale be?
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