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Suppose that the projects are no longer independent; instead they are mutually exclusive. The manager has determined the appropriate discount rate to be 8% for

Suppose that the projects are no longer independent; instead they are mutually exclusive. The manager has determined the appropriate discount rate to be 8% for all of the recommend projects. The firm should accept and reject which project?

Year A B C

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-1200 -1500 -2500
1 600 1000 1000
2 600 600 1000
3 400 200 600
4 200 400 800

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