Project E requires an initial investment of $100,000 and the produces annual cash flows of $42,000...

Project E requires an initial investment of $100,000 and the produces annual cash flows of $42,000 per year for each of the next 3 years. Project L also requires an initial investment of $100,000 and produces cash flows of $35000 in year 1, $45,000 in year 2, and $75,000 in year 3. If the discount rate is 15% and the projects are mutually exclusive.

a) Project L should be chosen

b) Neither project is chosen

c) Project E should be chosen

d) Both projects should be chosen.

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jeff jeffy answered 1 year ago

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