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Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown as follows. The required rate of return on projects of
Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown as follows. The required rate of return on projects of both of their risk class is 10 percent, and the maximum allowable payback and discounted payback statistic for the projects are two and a half and three and a half years, respectively. o 1 2 3 - 1000 300 400 700 Time Project A Cash flow Project B Cash flow -500 200 400 300 The NPV for project A is The NPV for project B is
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