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your company is considering an investment in one of two mutually exclusive projects. roject 1 involves a labor intensive production process. initial outlay for project

your company is considering an investment in one of two mutually exclusive projects. roject 1 involves a labor intensive production process. initial outlay for project 1 is $1,495 with expected after-tax cash flows of $500 per year in years 1-5. project 2 involves a capital intensive process, requiring an initial outlay of $6,704. after-tax cash flows for project 2 are expected to be $2000 per year for years 1-5. your firm's discount rate is .10 for both projects. which project should you take opn?

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