Question: 12.13 Defco Constructions is offered two contracts on the same day for building a new retirement village and a new library complex respectively. The contracts

12.13 Defco Constructions is offered two contracts on the same day

12.13 Defco Constructions is offered two contracts on the same day for building a new retirement village and a new library complex respectively. The contracts promise total net profits of $11 million and $14 million, extending over four years and five years, respectively. Each will require investment of $8 million. On the basis of ARR, which contract is more profitable

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