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The president of Company HC has two mutually exclusive projects namely, Project A - 1 and A - 2 . Their net present values are

The president of Company HC has two mutually exclusive projects

namely, Project A

- 1

and A

- 2 .

Their net present values are $

150, 000

dollars and $

10, 000,

respectively.

Using

net present value as the basis, which project should the

company pursue?

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