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Project A has an Initial cost of $80,000 and provides cash Inflows of $34,000 a year for three years. Project B has an Initial cost
Project A has an Initial cost of $80,000 and provides cash Inflows of $34,000 a year for three years. Project B has an Initial cost of $80,000 and produces a cash Inflow of $114,000 in year 3. The projects are mutually exclusive. Which project(s) should you accept if the discount rate is 11.7 percent? What if the discount rate is 13.5 percent? Accept A as it always has the higher NPV. Accept B as it always has the higher NPV. Accept A at 11.7 percent and B at 13.5 percent. O Accept B at 11.7 percent and A at 13.5 percent. Accept A at 11.7 percent and neither at 13.5 percent
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