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V. The EWC corporation is faced with two mutually exclusive investment proposals. One would cost $100,000 and provide net cash flows of $30,000 per year
V. The EWC corporation is faced with two mutually exclusive investment proposals. One would cost $100,000 and provide net cash flows of $30,000 per year for 5 years. The other would cost $50,000 and provide net cash flows of $16,000 per year for five years. EWC has a 10% discount rate. Compute the Net Present Value (NPV) for each project. (show your work)
Which project should be accepted?
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