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You are assessing two independent projects using the NPV technique. You note that the cash flows of Project A are as follows: Year 0 =

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You are assessing two independent projects using the NPV technique. You note that the cash flows of Project A are as follows: Year 0 = -$1,200, Year 1 = $675, Year 2 = $485, Year 3 = $300, Year 4 = $25. The cash flows of Project B are as follows: Year 0 = -$1,200, Year 1 = $100, Year 2 = $275, Year 3 = $400, Year 4 = $875. If the discount rate is 11.0% for both projects, which of the following best describes what you should do? You should only proceed with Project A even though both projects are NPV positive. However you should choose the project with the highest NPV since they are independent. You should only proceed with Project A because it is NPV positive and Project B is NPV negative. You should proceed with neither project since both are NPV negative. You should proceed with both projects since both are NPV positive and they are independent

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