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Problem #1: The table below provides the estimated end-of-year net cash flows that would be received from alternative projects Red and Blue for an investment

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Problem #1: The table below provides the estimated end-of-year net cash flows that would be received from alternative projects Red and Blue for an investment of $200,000. Project Red Project Blue Year 1 $40,000 $90,000 Year 2 $60,000 $80,000 Year 3 ||$70,000 $60,000 Year 4 $121,000 $50,000 (a) Find the NPV of each project if the cost of capital is 5%. (b) In part (a), which project is better? (c) Find the NPV of each project if the cost of capital is 7%. (d) In part (c), which project is better? (A) 52532.64 and 51242.02 (B) 50956.66 and 49704.76 (C) 54108.62 and 52779.28 (D) 55684.6 and 54316.55 (E) 57260.58 and 55853.81

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