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You are considering the following two mutually exclusive projects. The required rate of return is 10% for project A and 9% for project B. Which project should you accept and why?


Year                 Project A          Project B
0                       -$68,000         -$75,000
1                        28,000             15,000
2                        20,000             20,000
3                        20,000             20,000
4                        10,000             30,000

 


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