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Year Cash Flow A Cash Flow B 0 -300 000 -40,000 Consider the following two mutually exclusive projects 1 20 000 19 000 2 50
Year Cash Flow A Cash Flow B
0 -300 000 -40,000
Consider the following two mutually exclusive projects
1 20 000 19 000
2 50 000 12 000
3 50 000 18 000
4 390 000 10 500
Assume your require a 10 percent return on your investment. If you apply the NPV criterion, which investment will you choose? Why? Show your work
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