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ABC Company is considering two investments both of which cost $10,000

Finance

ABC Company is considering two investments both of which cost $10,000. The cash flows are as follows: Year Project A Project B $6,000 $5,000 out of 1 4,000 3,000 an 2 3 3,000 8,000 Based on the net present value method, assuming a cost of capital of 10%, which of the two projects should be chosen?

Option 1

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