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Question #3: (7.5 marks) Suppose you have the following 2 projects: Project A generates net cash flow of $600 annually for next 5 years Project

Question #3: (7.5 marks)

Suppose you have the following 2 projects:

Project A generates net cash flow of $600 annually for next 5 years

Project B generates net cash flow of $1,000 annually for next 3 years

If the cost for each project is $2,000 and interest rate is 10%. Determine which project should be accepted using NPV.

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