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Two mutually exclusive investments have the cash flow of: Project A C $800 I-$300 I-$275 ?$250 $225 I-$200 L-$800 4 Project B C-$400 1-$250 1-200
Two mutually exclusive investments have the cash flow of: Project A C $800 I-$300 I-$275 ?$250 $225 I-$200 L-$800 4 Project B C-$400 1-$250 1-200 -$150 1-$100 I-$50 0 2 4 L= $400 C: Cost, I:Income, L:Salvage The minimum rate of return is 24% for the first two years and 12% for the last three years. Using NPV, explain which investment is economically better? Show all your work in detail please
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