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You have two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 - 161,000 -109,000 1 29,800 60,300 2 49,500 44,600 3 70,000

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You have two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 - 161,000 -109,000 1 29,800 60,300 2 49,500 44,600 3 70,000 29,900 4 90,800 20,000 Irrespective of the project, the discount rate is 9 percent. Calculate the payback and discounted payback periods for the projects. Which one will you consider? (Round answers to 2 decimal places, e.g. 25.25.) Project A Project B Better Project Payback period years years Discounted payback period years years

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