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Zellars, Inc is considering 2 mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $65,000 in year 1 and
Zellars, Inc is considering 2 mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $65,000 in year 1 and $75,000 in year 2. Project B costs $120,000 and is expected to generate $64,000 in year one, $67,000 in year two, $56,000 in year three, and $45,000 in year four. Zellars required rate of return for these projects is 10%. The net present value for Project A is: A) $19,458 B) $26,074 C) $12,358
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