If the required return is 10 and robb computer applies the

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The Robb Computer Corporation is trying to choose between the following two mutually exclusive design projects:

Year CF Project I CF Project II

0 -30000 -5000

1 15000 2800

2 15000 2800

3 15000 2800

a) If the required return is 10% and Robb Computer applies the present value index decision rule, which project should the firm accept?

b) If the company applies the NPV decision rule, which project should it take?

Reference no: EM13573725

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