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You are considering two investment projects. Project A has an initial cost of $15,000 and is expected to generate cash flows of $6,000 per year
You are considering two investment projects. Project A has an initial cost of $15,000 and is expected to generate cash flows of $6,000 per year for three years. Project B has an initial cost of $10,000 and is expected to generate cash flows of $3,500 per year for four years. If the discount rate is 8%, which project should you choose based on their Net Present Values (NPVs)? Project A Project B Both projects have the same NPV Neither project is acceptable
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