The prevailing interest rate is 10%. If the following three projects are mutually exclusive, which should you
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The prevailing interest rate is 10%. If the following three projects are mutually exclusive, which should you take?
Year Project 0 1 2 1 −$500 +$300 +$300 2 −$50 +$30 +$30 3 −$50 +$35 +$35 You have already worked out the recommendations of the NPV and the IRR rule.What does the profitability rule recommend?
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