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Project A requires an original investment of $64,900. The project will yield cash flows of $19,200 per year for 4 years. Project B has a
Project A requires an original investment of $64,900. The project will yield cash flows of $19,200 per year for 4 years. Project B has a computed net present value of $3,180 over a 4-year life. Project A could be sold at the end of 4 years for $14,600. Following is a table for the present value of $1 at compound interest: Following is a table for the present value of an annuity of $1 at compound interest: Use the tables above. a. Determine the net present value of Project A over a 4-year life with salvage value assuming a minimum rate of return of 12%. Round your answer to two decimal places. b. Which project provides the greatest net present value
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