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Suppose you work for a small farm owner, and you are asked to calculate a rate of return for two projects to determine which project
Suppose you work for a small farm owner, and you are asked to calculate a rate of return for two projects to determine which project should be selected. Project A has a total life of years with a discount rate of and Project B has a similar total life with a discount rate of The expected cash flows of the projects are given in the table below:
tableYearProject AProject B
What investment technique would be appropriate and explain which project you would recommend to the owner?
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