Considering the two mutually exclusive projects

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Reference no: EM13941551

You are considering the following two mutually exclusive projects. The required rate of return is 14.5% for project A and 13.7% for project B. Which project should you accept and why?

Year                Project A                    Project B

0                      - $50,000                     - $50,000

1                      + $25,000                    + $41,000

2                      + $36,000                    + $20,000

3                      + $21,000                    + $10,000

Reference no: EM13941551

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