Question: Maggiore Constructions is offered two contracts on the same day. The contracts promise total net profits of $11million and $14million, extending over five years and

Maggiore Constructions is offered two contracts on the same day. The contracts promise total net profits of $11million and $14million, extending over five years and six years, respectively. Each will require investment of $10 million. On the basis of ARR, which contract is more profitable?

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