Question: Suppose the two projects described below are mutually exclusive and are subject to a hurdle rate of 8%. If the company is not practicing capital

Suppose the two projects described below are mutually exclusive and are

Suppose the two projects described below are mutually exclusive and are subject to a hurdle rate of 8%. If the company is not practicing capital rationing, which one or ones should be accepted? Years 0 1 2 3 4 5 Project A -2500 1250 800 750 500 50 Project B -2500 100 200 300 850 2750 A B Neither A or B

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