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Your boss hands you the following information for a pair of mutually exclusive projects and asks for your recommendation. What should you do? Cash Flow

Your boss hands you the following information for a pair of mutually exclusive projects and asks for your recommendation. What should you do?

Cash Flow
Project Cost of Capital IRR Year 0 Year 1 Year 2 Year 3
A 13% 30% -10,000 8000 5000 2000
B 13% 26% -10,000 2800 6000 8000

The NPV of project A is $___ and the NPV of project B is $___. Using the NPV rule, project ___ should be selected.

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