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You work for an outdoor play structure manufacturing company and are trying to decide between the following two projects: Year-End Cash Flows ($ thousands) Project

You work for an outdoor play structure manufacturing company and are trying to decide between the following two projects:

Year-End Cash Flows ($ thousands)

Project

0

1

2

Playhouse (minor project)

29

17

21

Fort (major poject)

79

39

51

You can undertake only one project. If your cost of capital is

6 %, which one should you choose?

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