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You are evaluating the following two mutually exclusive projects: Year 0 1 2 3 Project A -$50.000 $24,200 $36,800 $25.242 Project B -$45,000 $39,000 $20.100
You are evaluating the following two mutually exclusive projects: Year 0 1 2 3 Project A -$50.000 $24,200 $36,800 $25.242 Project B -$45,000 $39,000 $20.100 $18.000 The cost of capital is 12.6%. Your decision to choose which project would be better based on: Project 8 because it has a higher IRR than project A Project B because it has a shorter payback period than project A. Project A because its NPV is about $214 more than the NPV of project B. Project A because its NPV is about $100 more than the NPV of project B
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