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You are going to choose between two mutually exclusive investments. Both will last for three years. Investment A costs $90,000 but yields after-tax cash flows

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You are going to choose between two mutually exclusive investments. Both will last for three years. Investment A costs $90,000 but yields after-tax cash flows of $20.000, $30,000, and $63.000, respectively, for the next three years while investment costs $80,000 but generates $32,000 cash flow after tax per year. If the cost of capitalis 8%, which investment should you choose? B because its IRR exceeds 8% A because it has a higher positive NPV. A because its IRR is positive. B because it pays back sooner

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