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Your company is considering two projects and has estimated the following cash flows: Year Project A Project B 0 - 1 5 , 0 0

Your company is considering two projects and has estimated the following cash flows:
Year Project A Project B
0-15,000-20,000
110,00010,000
210,00019,000 a. If project B expands your manufacturing capacity by building a separate factory, what is the relevant cash flow for evaluating project B in year 2? in dollars b. If project B replaces an existing factory (project A), what is the relevant cash flow for evaluating project B in year 2? c. If project B replaces an existing factory (project A), what is the relevant cash flow for evaluating project B in year 0? in dollars

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