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Two mutually exclusive projects are under consideration with the details shown. The company's required rate of return for projects of this risk level is 14%,

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Two mutually exclusive projects are under consideration with the details shown. The company's required rate of return for projects of this risk level is 14%, using this information, answer the questions below: Year Project A Project B 0 (390,000) (62,000) 1 60,000 28,000 2 74,000 26,000 3 69,000 22.000 4 444,000 18,600 A) Calculate the payback period for each project. Round to two decimals. Project A 6.5 years Project B 2 21 years B) Based on the result of the payback calculation, which project would you recommend? Project B

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