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SAT, 16.12.2021 21:30 raprocksbob

Two mutually exclusive projects have an initial cost of $47,500 each. Project a produces cash inflows of $25,300, $37,100, and $22,000 for years 1 through 3, respectively. Project b produces cash inflows of $43,600, $19,800 and $10,400 for years 1 through 3, respectively. The required rate of return is 14. 7 percent for project a and 14. 9 percent for project b. Which project(s) should be accepted and why?.

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