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Your firm has estimated the following cash flows for two mutually exclusive capital investment projects. The firm's required rate of return is 13% Year Project
Your firm has estimated the following cash flows for two mutually exclusive capital investment projects. The firm's required rate of return is 13% Year Project A Cash Flow Project B Cash Flow 0 1 2 $100,000 28.900 28,900 28.900 28.900 28,900 -$100.000 48.000 40,000 40,000 3 4 5 Which of the following statements best describes projects A and B? O Project A should be accepted because it has the highest NPV. Neither project is acceptable. Project B should be accepted because it has the highest EAA Both projects should be accepted because they have positive NPVs and EAAS Project A should be accepted because it has the highest EAA
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