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Question 10 Given the cash flows for the following 2 projects, which of the following is true assuming a discount rate of 12%? Project A:

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Question 10 Given the cash flows for the following 2 projects, which of the following is true assuming a discount rate of 12%? Project A: Investment: $1,500, Cash flows for 3 years: $400, $600, $800 NPV Project B: Investment: $2,000, Cash flows for 3 years: $600, $800, $1200 A. Project A has a higher NPV and a higher IRR B. Project A has a higher NPV but a lower IRR C. Project B has a higher NPV and a higher IRR D. The company can invest in any of these projects because they have the same investment amounts and yield the same total returns over the 3 years. E. The company should not invest in either because both are negative NPV investments

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