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Wally World is considering two investment projects that both have positive NPV's that are the same and meet the company's threshold of an NPV of

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Wally World is considering two investment projects that both have positive NPV's that are the same and meet the company's threshold of an NPV of at least $120,000 to be considered for acceptance. Wally has a required rate of return of 14% on all investments. Wally knows that the projects are not equal in size and Wally is having trouble evaluating which project he should accept. Which project would you advise Wally to accept - which is more profitable? (provide a decision but support your decision with calculations) and explain why (what do the results of your analysis mean)? Project 1 Project 2 Investment Required $400,000 $1,000,000 PV of Cash Flows 275.000 875.000 NPV 125,000 125,000

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