Question: All-American Inc. is evaluating two mutually exclusive projects. The required rate of return on these projects is 7%. (Round to 2 decimals) Year Project A

All-American Inc. is evaluating two mutually exclusive projects. The required rate of return on these projects is 7%. (Round to 2 decimals)

Year Project A Project B
0 -750,000 -1,400,000
1 300,000 500,000
2 300,000 500,000
3 300,000 500,000
4 300,000 500,000

Based on the information provided the firm should:

Accept Project a

Accept project b

Neither project

Both projects

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