Question: MONICA COOPERATION trying to choose between two mutually exclusive projects: (4 marks) Year Cash Flow Project A Cash Flow Project B 0 (65,000) (20,000) 1

MONICA COOPERATION trying to choose between two mutually exclusive projects: (4 marks)

Year

Cash Flow Project A

Cash Flow Project B

0

(65,000)

(20,000)

1

27,000

9,100

2

27,000

9,100

3

27,000

9,100

The required return is 10%.

Using the NPV rule analyze the above given data and recommend the project that the corporation should take and give proper justification.

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