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Dorati Inc. is considering two mutually exclusive projects.  Dorati used a 15% required rate of return to...

  1. Dorati Inc. is considering two mutually exclusive projects.  Dorati used a 15% required rate of return to evaluate capital expenditure projects.  If the two projects have the costs and cash flows shown below, determine the NPV for each.

Year                             Project S                                   Project T

   0                                -$70,000                                   -$100,000

   1                                  $50,000                                      $60,000

   2                                  $60,000                                      $70,000

   3                                                                                    $80,000         

              4                                                                                    $90,000

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