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Two mutually exclusive projects have the following NPVs and project lives.
If the cost of capital is 15%, which project would you accept?
Z-statistic
A measure that describes how many standard deviations an element is from the mean of a population in standardized testing.
Alpha Levels
A threshold value that determines the significance level of a statistical test, representing the probability of rejecting a true null hypothesis (committing a Type I error).
Two-tailed Test
A statistical test that considers the possibility of both positive and negative differences or effects.
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