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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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