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Q3. You are considering the following two mutually exclusive projects. The required rate of return...

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Finance

Q3. You are considering the following two mutually exclusive projects. The required rate of return is 12.2 percent for project A and 11.5 percent for project B. Which project should be accepted and why? (Hint: Use NPV formula in excel)
Project A Project B
Rate 12.20% 11.50%
Initial Investment 54,000 54,000
Year 1
Year 2
Year 3
PV of Cash Flows
less investment
Should this project be accepted or rejected? Why?

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