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Project A has an initial cost of $75,000 and annual cash flows of $33,000 for three years.Project B costs $60,000 and has cash flows of $25,000,$30,000,and $25,000 for Years 1 to 3,respectively.Projects A and B are mutually exclusive.The incremental IRR is ________ and if the required rate is higher than the crossover rate then Project ________ should be accepted.
Demand for Dollars
Refers to the global desire or need for U.S. currency, driven by its use in international trade, investment, and as a reserve currency.
Balance of Payments Surplus
A situation where the total of the payments received from abroad exceeds the total of the payments made to abroad.
FX Reserves
Short for foreign exchange reserves; assets held on reserve by a central bank in foreign currencies, used to back liabilities on their own issued currency as well as to influence monetary policy.
Economic Fortune
The state of prosperity or success, especially as determined by economic variables such as income, employment, and market position.
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