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A2. (Mutually exclusive projects) Consider the cash flows given below for the mutually exclusive projects, S and L. a. If the cost of capital is 10%, what is the NPV of each investment? b. What is the IRR of each investment? c. Which investment should you accept? YEAR 0 1 2 Project S ˆ€™100 160 0 Project L ˆ€™100 0 200

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