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Evaluate the following mutually exclusive projects using IRR as a selection criterion.Assuming the discount rate to be 14 percent, which project-if either-would be selected? Project A costs $50,000 and returns $15,000 after-tax annually.Project B costs $35,000 and returns $11,000 after-tax annually.Both projects last five years.
Units
Standardized quantities used to measure, count, or quantify objects or phenomena.
Good X
A placeholder term commonly used in economics to refer to a generic good or product involved in an analysis or example.
Good Y
A hypothetical product used in economics to model consumer choice, market interactions, or other economic scenarios alongside another good, typically referred to as Good X.
Consumer
An individual or group who purchases goods or services for personal use and not for manufacture or resale.
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