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Mahjong, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) AWNKO -$43,000 -$43,000 23,000 7,000 17,900 13,800 12,400

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Mahjong, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) AWNKO -$43,000 -$43,000 23,000 7,000 17,900 13,800 12,400 24,000 9,400 26,000 Question (b) If the required return is 11 percent, what is the NPF for each of these projects? Which project will the company choose if it applies the NPV decision rule? (c) Over what range of discount rates would the company choose project A? Project B? At what discount rate would the company be indifferent between these two projects? Explain

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