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Zayas has idenitified the following two mutually exclusive projects. Year Cash Flow (A)Cash Flow (B) Year Cash Flow (A) Cash Flow (B) 0 -$78,500 -$78,500

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Zayas has idenitified the following two mutually exclusive projects. Year Cash Flow (A)Cash Flow (B) Year Cash Flow (A) Cash Flow (B) 0 -$78,500 -$78,500 1 $43,000 $21,000 2 $29,000 $28,000 3 $23,000 $34,000 4 $21,000 $41,000 a. What is the IRR for each project and if you apply the IRR decision rule which project would you accept. b. If the required return is 11% what is the NPV for each of these projects? Which project would you choose

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