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Two mutually exclusive projects have an initial cost of $ 4 1 , 0 0 0 each. Project x produces cash inflows of $ 2
Two mutually exclusive projects have an initial cost of $ each. Project produces cash inflows of $$ and $ for Years through
respectively. Project produces cash inflows of $$ and $ for Years through respectively. The required rate of return is percent for
Project and percent for Project Which projects should be accepted and why?
Multiple Choice
Project because it has the higher required rate of return.
Project because it has the larger NPV
Both projects, because they both have positive NPVs
Project because it has the higher required rate of return.
Project Y because it has the largest NPV
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