Question: Amazon luxury Inc. is evaluating the following two mutually exclusive projects. The company estimates that the required rate of return is 10.75 percent for project

Amazon luxury Inc. is evaluating the following two mutually exclusive projects. The company estimates that the required rate of return is 10.75 percent for project A and 12 percent for project B. Which project should the company accept and why? (20 marks)

Year A B

0 -36,000 -69,000

1 21,600 52,600

2 18,200 46,100

3 22,100

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