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Santa Clara Corporation is considering investments G and H. Initial costs and year-end cash flows follow. The limiting resource that caused the two investments to

Santa Clara Corporation is considering investments G and H. Initial costs and year-end cash flows follow. The limiting resource that caused the two investments to be mutually exclusive can be reused. The required return is 6.5 percent.

Year 0 1 2 3 4 5

G -150,000 45,000 45,000 45,000 80,000

H -95,000 35,000 25,000 55,000 45,000 60,000

Net present value for project G_____________ Equivalent annuity for project G_________

Net present value for project H__ __ Equivalent annuity for project H_________

Which investment should be chosen? _______________

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