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McDonald's is evaluating two investment projects: Project A and Project B. Project A requires an initial investment of $5 million and is expected to generate
McDonald's is evaluating two investment projects: Project A and Project B. Project A requires an initial investment of $5 million and is expected to generate cash flows of $1.5 million per year for five years. Project B requires an initial investment of $8 million and is expected to generate cash flows of $2 million per year for five years. Calculate the net present value (NPV) of each project using a discount rate of 10%, and recommend which project McDonald's should undertake.
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