Question: Your company has two mutually exclusive projects on its table. Project A requires an investment of $500 now, and yields $50 (in savings) every year

Your company has two mutually exclusive projects on its table. Project

A requires an investment of $500 now, and yields $50 (in savings) every year

after. Project B requires $1; 000 now and pays $90 every year after.

a) Suppose that your required rate of return is 3% on both projects as theyare deemed very safe. Which project of the two should you implement?

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