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The prevailing interest rate is 10%. If the following three projects are mutually exclusive, which should you take? Year 0 Year 1 Year 2 A

The prevailing interest rate is 10%. If the following three projects are mutually exclusive, which should you take?

Year 0 Year 1 Year 2

A -500 +300 +300

B -50 +30 +30

C -50 +35 +35

What does the NPV rule recommend? What does the IRR rule recommend?

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