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Ontario Inc. is considering investing in two projects, each of which has an initial investment requirement of $100,000. Both projects A and B are

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Ontario Inc. is considering investing in two projects, each of which has an initial investment requirement of $100,000. Both projects A and B are "normal" risk for the company. Project A has a net present value of $25,000. Project B has a net present value of $20,000. Which of the statements below is true? * Project B is better than Project A because of the risk. Project A is better than Project B because it has a higher net present value and the same risk level. Projects A and B are equally valuable. There is insufficient information to make a rational choice between Project A and Project B None of the above

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