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Question 1 (Mandatory) (1 point) Projects A and B are mutually exclusive. The required return is 10%. Year Cash Flow (A) Cash Flow (B) O
Question 1 (Mandatory) (1 point) Projects A and B are mutually exclusive. The required return is 10%. Year Cash Flow (A) Cash Flow (B) O -20,000 -175,000 1 10,000 80,000 2 11,000 35,000 3 11,000 125.000 If you apply the IRR criterion, which investment will you choose? Why? A) Both projects A and B. because IRR is greater than 10%. B) Project A, because IRR is positive and higher. C) Project B, because IRR is greater than 10% and higher. D) Project B. because IRR is positive and higher. E) Project A because IRR is greater than 10% and higher
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