Question: PROBLEM 12.2 KC company is considering two mutually exclusive projects. The initial cost of both projects is 5,000, and each has an expected life of

PROBLEM 12.2 KC company is considering two mutually exclusive projects. The initial cost of both projects is 5,000, and each has an expected life of five years. Under three possible states of economy, their annual cash flows and associated probabilities are as follows:

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