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You are an investment manager in a company considering two independent three-year projects. The cash flows and initial costs associated with the projects are given

You are an investment manager in a company considering two independent three-year projects. The cash flows and initial costs associated with the projects are given below. What investment decision would you make on the two projects under the NPV criterion? Assume the company does not have a fund limit for investment projects, and the required rate of return for both projects is 10% p.a.

a.

Project 1

b.

Project 2

c.

Both projects

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