Question: A company is at two mutually exclusive projects with the following cash flows. If the company has a required return for new projects of 11%,

A company is at two mutually exclusive projects with the following cash flows. If the company has a required return for new projects of 11%, what should they do?

Year Project A Project B
0 $ (490,000) $ (490,000)
1 280,000 50,000
2 125,000 125,000
3 100,000 250,000
4 100,000 180,000

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