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Your firm is considering investing in one of two mutually exclusive projects. The projects will produce a product that the firm needs for the foreseeable

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Your firm is considering investing in one of two mutually exclusive projects. The projects will produce a product that the firm needs for the foreseeable future. The required rate of return on both projects is 12.6% compounded annually. Project A has a cost of $250,000 and it will produce free cash flows of $65,000 per year for the next 6 years. Project B has a cost of $165,000 and it will produce cash flows of $50,000 per year for the next 5 years. Which project should the company invest in? Project B Project A O Project A and Project B Neither project A nor project B

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