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Net present value and mutually exclusive projects. The Larson Company must choose between two mutually exclusive projects. The cost of capital is 1 2 percent.

Net present value and mutually exclusive projects. The Larson Company must choose

between two mutually exclusive projects. The cost of capital is

12

percent. Given the

following data, which project should Larson choose, and why?

Net present value and mutually exclusive projects. Choose Project N

.

See the following

table.

Net present value of cash flows discounted at

12

percent is larger for

N .

Please explain in detail how to do this. The correct answer is provided. Thank you.

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