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You are considering two mutually exclusive projects. Project A has cash flows of $78,000, $32,600, $45,900, and $53,400 for years 0 to 3, respectively. Project
You are considering two mutually exclusive projects. Project A has cash flows of $78,000, $32,600, $45,900, and $53,400 for years 0 to 3, respectively. Project B has cash flows of -$85,000, $14,700, $21,200, and $89,800 for years 0 to 3, respectively. Project A has a required return of 9 percent while Project B's required return is 11 percent. Which project(s), if either, should you accept based on net present value? Select one: a. Accept both projects b. Reject Project A and accept Project B c. accept Either one, but not both d. Reject both projects e. Accept Project A and reject Project B
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