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You are considering two mutually exclusive projects with the following cash flows. Which project(s) should you accept if the discount rate is 7 %? What
You are considering two mutually exclusive projects with the following cash flows. Which project(s) should you accept if the discount rate is 7 %? What if the discount rate is 10%? Year lo Project Al -$275,000 0 11 Project B -$202,000 113,600 81,900 47,000 2 0 3 360,000 Multiple Choice Accept B at 7% and A at 10 %. Accept A at 7% and neither at 10 %. Accept A at 7% and B at 10 %. Accept project B as it always has the higher NPV. O Accept project A as it always has the higher NPV
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