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You are assigned two mutually exclusive projects to decide on which one shall be accepted. Project A costs $50,000 and returns $15,000 after-tax annually. Project

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You are assigned two mutually exclusive projects to decide on which one shall be accepted. Project A costs $50,000 and returns $15,000 after-tax annually. Project B costs $35,000 and returns $11,000 after-tax annually. Both projects have a 5-year life. (i) Evaluate the two project using IRR method and decide which one is to be accepted. (ii) Evaluate the two project assuming the opportunity cost of capital is 14% and decide which one s to be accepted. be accepted. WHY? (iii)Evaluate the two projects assuming the opportunity cost of capital is 8% and decide which one shall

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