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Assume a company is reviewing two projects. Management must decide whether to move forward with one, both, or neither. Its cost of capital is 10%. The cash flow patterns for each are as follows: Project A Initial Outlay = $5,000 Year one = $1,700 Year two = $1,900 Year three = $1,600 Year four = $1,500 Year five = $700
Sagot :
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