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(Mutually exclusive projects and NPV) You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows: Year Project
(Mutually exclusive projects and NPV)You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows:
Year Project A Cash Flow Project B Cash Flow
0 $(110,000) $(110,000)
1 $35,000 $0
2 $35,000 $0
3 $35,000 $0
4 $35,000 $0
5 $35,000 $240,000
If the appropriate discount rate on these projects is 9 percent, which would be chosen and why?
The NPV of Project A is ____ (Round to the nearest cent.)
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