Question: Calculate the Net Present Value (NPV) by applying the valuation techniques for the capital budget of the following two projects that a company is evaluating.

Calculate the Net Present Value (NPV) by applying the valuation techniques for the capital budget of the following two projects that a company is evaluating. The assumed rate of return is 11% per year, computed annually, for both projects. Assume an initial investment of $140,000 for A and $180,000 for B. Then answer: Which project should the firm take into consideration, assuming both projects are Mutually Exclusive? Explain the reason for your answer.

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