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Your company has two mutually exclusive projects on its table. Project A requires an investment of $500 now, and yields $50 (in savings) every year
Your company has two mutually exclusive projects on its table. ProjectA requires an investment of $500 now, and yields $50 (in savings) every yearafter. Project B requires $1; 000 now and pays $90 every year after.
a) Suppose that your required rate of return is 3% on both projects as theyare deemed very safe. Which project of the two should you implement?
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