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Two mutually exclusive projects have projected cash flows as follows: Year Project A S 90 12 NPV RR Project B -1000 120 112 1120 $13

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Two mutually exclusive projects have projected cash flows as follows: Year Project A S 90 12 NPV RR Project B -1000 120 112 1120 $13 $35 (18.4%. (12.0% (a) Compute the Crossover Rate A.9 13 12 (b) Graphically illustrate the present value profile of the two projects. (c) Which project would you select? Why? What assumptions are inherent in your decision

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