Financial manager at kyser jones is considering two mutual

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The financial manager at Kyser Jones is considering two mutually exclusive projects with the following projected cash flows:

Projected Cash Flows

Year

Project M

Project Z

0

-$60,000

-$60,000

1

22,500

0

2

22,500

0

3

22,500

0

4

22,500

111,000

If Kyser Jones’ required rate of return is 11%, which project would be chosen and why?

Reference no: EM13966285

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