Question: Lithium Inc is considering two mutually exclusive projects, Project A and B. Project A cost $95,000 and is expected to generate $65,000 in year one

Lithium Inc is considering two mutually exclusive projects, Project A and B. Project A cost $95,000 and is expected to generate $65,000 in year one and $75,000 in year two. Project B costs $120,000 and is expected to generate $64,000 in year one, $67,000 in year two, $56,000 in year three and $45,000 in year four. Lithium Inc.'s required rate of return for those projects is 10%. The modified rate of return for Project A is:

A. 29.63%

B. 24.18%

C. 26.89%

D. 19.19%

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