Projects are not mutually exclusive

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Project H requires an initial investment of $100,000 and the produces annual cash flows of $45,000 per year for each of the next 3 years. Project T also requires an initial investment of $100,000 and produces cash flows of $30,000 in year 1, $40,000 in year 2, and $70,000 in year 3. If the discount rate is 10% and the projects are not mutually exclusive: a. Project H should be chosen b. Both projects should be accepted c. Project T should be chosen d. H and T are equally attractive

Reference no: EM13914540

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