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Two mutually exclusive projects are available. The discount rate is 10%. Project I Year 0 -56,000 Year 1 25,000 Year 2 25,000 Year 3 25,000

Two mutually exclusive projects are available.

The discount rate is 10%.

Project I

Year 0 -56,000 Year 1 25,000 Year 2 25,000 Year 3 25,000

Project II

Year 0 -19,100 Year 1 10,150 Year 2 10,150 Year 3 10,150

What is the NPV for both projects? Using the NPV as the exclusive criteria, which project should you take?

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