Mutually exclusive projects your firm should undertake

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Reference no: EM131178162

You have been asked to determine which of the mutually exclusive projects your firm should undertake. The first one has a life of three years. It costs $150,000 and will generate cash flows of $70,000 per year. The other one has an investment of $715,000, a nine-year life and is expected to generate $140,000 per year for the nine years. Use a discount rate of 12%. Which project should you recommend that you firm take?

Reference no: EM131178162

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