Explain which of the two projects the firm should accept

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A firm must choose from one of two proposed projects presented below. The farm's cost of capital is 11.25%. Using the NPV method explain which of the two projects the firm should accept with an initial investment of initial investment  = $185000 

Year

Project A

Project B

PVA

PVB

Year 1

50,000

15,000

   

Year 2

66,000

17,000

   

Year 3

45,000

25,000

   

Year 4

35,000

75,000

   

Year 5

25,000

70,000

   

Year 6

20,000

45,000

   

 

Reference no: EM131016723

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