Question: A company is evaluating two possible projects with the following cash flows. Suppose that the projects are contingent. Which answer describes the correct decision if

A company is evaluating two possible projects with the following cash flows. Suppose that the projects are contingent. Which answer describes the correct decision if the firm's required rate of return is 12%?

Year

0

1

2

3

4

Project 1

-$50

$15

$15

$5

$5

Project 2

-$30

$20

$10

$10

$10

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