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You are considering the following two mutually exclusive projects. The required return on each project is 11 percent. Which project should you accept and
You are considering the following two mutually exclusive projects. The required return on each project is 11 percent. Which project should you accept and what is the best reason for that decision? Year 0 Project A -$15,000 Project B -$15,000 Year 1 $ 9,000 $ 3,000 Year 2 $ 8,000 $5,000 Year 3 $ 5,000 $ 9,000 Year 4 $ 4,000 $11,000 Project A; because it pays back faster Project A; because it has the higher net present value Project B; because it has the higher profitability index Project A; because it has the higher profitability index Project B; because it has the higher net present value
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