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Very Good Building Co. has the following investment options: Project A Project B Investment $ 450,000 $ 310,000 Useful life (years) 8 8 Estimated annual

Very Good Building Co. has the following investment options:

Project A

Project B

Investment

$ 450,000

$ 310,000

Useful life (years)

8

8

Estimated annual net cash inflows for useful life

$ 81,000

$ 72,000

Residual value

$ 30,000

$ 10,000

Depreciation method

Straightline

Straightline

Required rate of return

12%

18%

Based on NPV, which project should the company pursue?

Group of answer choices

Project B should be pursued

Project A should be pursued

Both projects should be pursued

Neither project should be pursued

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