Question: ABC Inc. is considering two mutually exclusive investment projects, each of which requires an up-front expenditure of $2,336,000.00. You estimate that the investments will produce

ABC Inc. is considering two mutually exclusive investment projects, each of which requires an up-front expenditure of $2,336,000.00. You estimate that the investments will produce the following net cash flows: Year Project A Project B 1 $5,290,000 $19,910,000 2 11,300,000 10,000,000 3 21,330,000 5,660,000 Which project should ABC Inc. choose , assuming the cost of capital is 12.50%

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