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Determine which project the company should choose

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Canvas Reproductions, Inc., is considering two mutually exclusive investments. Project A requires an initial outlay of $20,000 and has expected cash inflows of $5,000 for each of the next 5 years. Project B requires an initial outlay of $25,000 and has expected cash inflows of $6,500 for each of the following 5 years. Use a simple rate of return measure to determine which project the company should choose.

Reference no: EM131131898

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