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You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows: . If the appropriate discount rate on
You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows: . If the appropriate discount rate on these projects is 8 percent, which would be chosen and why?
YEAR PROJECT A CASH FLOW PROJECT B CASH FLOW 0 -110,000 -110,000 1 37,000 0 2 37,000 0 3 37,000 0 4 37,000 0 5 37,000 230,000
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