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Question 1 ( 25 points): An investor has two investment alternatives, Project A and Project B, that are mutually exclusive. Other investment opportunities also exist
Question 1 ( 25 points): An investor has two investment alternatives, Project A and Project B, that are mutually exclusive. Other investment opportunities also exist at 12% minimum rate of return. Cash flows for Project A and B are as follows. Which project is a better investment on the basis of NPV and IRR analysis? It is recommended that one apply incremental analysis techniques. Project A: Project B: C: Cost, I: Income, L: Salvage Value
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