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Present value of the cash flows

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A firm has only $20,000 to invest and must choose between two projects. Project A returns $24,800 after a year, while Project B pays $31,218 after three years.

(A) If management wants to earn 10 percent on an investment, which alternative would be selected based on the present value of the cash flows?

(B) If management wants to select the investment with the higher return, which alternative should be chosen?

Reference no: EM133075313

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