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Morgan Corporation is trying to decide which one of two projects it should accept. Both projects have the same start-up cost. Project 1 will produce
Morgan Corporation is trying to decide which one of two projects it should accept. Both projects have the same start-up cost. Project 1 will produce annual cash flows of $52,000 a year for six years. Project 2 will produce cash flows of $48,000 a year for eight years. The company requires a 15 percent rate of return. Which project should the company select and why?
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