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Q 12.49: Project A has a net present value of $36,000 and the present value of its cash flows is $116,000. Project B has a
Q 12.49: Project A has a net present value of $36,000 and the present value of its cash flows is $116,000. Project B has a net present value of $41,000 and the present value of its cash flows is $222,000. Which of the projects should be selected, and why? A Project B because it generates a larger net present value. B) Project B because the present value of its cash flows is almost twice as large as the present C value of Project A's cash flows. Project A because its net present value is similar to Project B's, but it requires about one-half the investment of Project B. Project B because its net present value is similar to Project A's, but it requires about two times the investment of Project A. D
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