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of Q4. Joyce is a new assistant manager in Peace AgBiz. Her boss asked her to evaluate the capital budget opportunities of two potential investments:

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of Q4. Joyce is a new assistant manager in Peace AgBiz. Her boss asked her to evaluate the capital budget opportunities of two potential investments: Project A and Project B. Joyce has not much knowledge about capital budgeting decision procedures, so she asked you for help. Fill out the following table and then answer the following questions. (10 points in total) Project A Project B Year After Tax Present After Tax After Tax Present After Tax Benefit (s) Value present Benefit(s) Value present Factor value Factor value of benefit benefit Year 1 $4,000 $2,000 Year 2 $6,000 $3,000 Year 3 $3,000 $4,000 Year 4 $2,000 $5.000 Year 5 $1,000 $6,000 Year 6 $1,000 $7,000 Total Note: The discount/interest rate is 7% and the initial total cost is $10,000 (2) If the average yearly investment for both Project A and Project B are $10,000, use the Average Rate of Return method to find the project Paul should choose. (2 points)

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