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The following two projects are mutually exclusive. Based on NPV, what project should the company choose to invest in? Assume each has a WACC of

The following two projects are mutually exclusive. Based on NPV, what project should the company choose to invest in? Assume each has a WACC of 5%.

Time Period Cash Flow for Project 1 Cash Flow for Project 2

0 -2200 -1000

1 500 500

2 400 500

3 500 600

4 1000 700

5 2000 800

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