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Two projects being considered by a firm and have the following projected cash flows: Project A Project B Year Cash Flow Cash Flow 0 ($120,000)

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Two projects being considered by a firm and have the following projected cash flows: Project A Project B Year Cash Flow Cash Flow 0 ($120,000) ($120,000) 1 45,000 35,000 2 45,000 45,000 3 65,000 55,000 The cost of capital is 10 percent Using the NPV rule, evaluate both projects if they are mutually exclusive Accept Project A Accept Project B Accept both Accept neither

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