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Which mutually exclusive project would you select, if both require initial investment at $1,000 and your discount rate is 15%; Project A with three annual
Which mutually exclusive project would you select, if both require initial investment at $1,000 and your discount rate is 15%; Project A with three annual cash flows of $1,000, or Project B, with two years of zero cash flow followed by three years of $1,500 annually?
A. Project B because it has a faster Payback period
B. Project A because it has a higher IRR
C. Project A because it has a faster Payback period
D. Project B because it has a higher NPV
E. Project A because it has a higher NPV
F. Project B because it has a higher IRR
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