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Project A has an initial investment of $12,000. It will last two years, and has cash flows that are expected to be $7,000 in year
Project A has an initial investment of $12,000. It will last two years, and has cash flows that are expected to be $7,000 in year 1 and $6,000 in year 2. Project B has an initial investment of $31,000. It will last four years and is expected to have cash flows as follows; $8,000 in year 1, $9,000 in year 2, $10,000 in year 3, and $12,000 in year 4. Both projects can be replicated once finished, and the projects are mutually exclusive. Using a required rate of return of 10%, what is your recommendation? A B Neither A nor B B CHECK
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