5.37 Consider the following two mutually exclusive investment projects: Project's Cash Flow n A B -$20,000 -$25,000 1 17,500 25,500 2 3 17,000 18,000 15,000 On the basis of the NPW criterion, which project would be selected if you use an infinite planning horizon with project repeatability (the same costs and benefits likely? Assume that i = 12%.

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A:

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