Question: Capital Budgeting 1. Two projects being considered are mutually exclusive and have the following cash flows: Year Project A Project B 012345 -$50,000 -$50,000

Capital Budgeting 1. Two projects being considered are mutually exclusive and have

Capital Budgeting 1. Two projects being considered are mutually exclusive and have the following cash flows: Year Project A Project B 012345 -$50,000 -$50,000 15,625 0 15,625 15,625 0 0 99,500 15,625 15,625 If the required rate of return on these projects is 10 percent, which would be chosen and why?

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