Solution-Choosing between the project

Choosing between the project

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Reference no: EM131395781

You are choosing between the following Project A and Project B. If the interest rate is 8%, and the cash flow streams are as provided below, which would you select? You can only select one. Explain your selection.

Year	Project A Cash Flow Stream A	Project B Cash Flow Stream B
0	-$50,000	-$50,000
1	15,625	0
2	15,625	0
3	15,625	0
4	15,625	0
5	15,625	99,500

Reference no: EM131395781

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Choosing between the project

Reference no: EM131395781

Reference no: EM131395781

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