Question: You are considering two mutually exclusive projects with the following cash flows. Which project should you accept if the discount rate is 7 percent? Year

You are considering two mutually exclusive projects with the following cash flows. Which project should you accept if the discount rate is 7 percent?

Year Project A Project B

0 -275,000 -202,000

1 0 113,600

2 0 81,900

3 360,000 47,000

What if the discount rate is 10 percent? Show all work and computations

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