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The Matterhorn Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (I) Cash Flow (II) 0 -$78,000 -$28,800

The Matterhorn Corporation is trying to choose between the following two mutually exclusive design projects:

Year Cash Flow (I) Cash Flow (II)
0 -$78,000 -$28,800
1 28,300 9,600
2 34,800 17,400
3 43,700 15,600

Required return is 11 percent:

A) What is the NPV for Project (II)?

B) Should they accept or reject the projects? One or the other? Both?

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