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A finance team for Holden Hotel Inc. would like to evaluate a set of capital...

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Finance

A finance team for Holden Hotel Inc. would like to evaluate a set of capital budgeting projects and wants to come up with the best decision according to the projects IRR and PI. Net investment and net cash flow estimations for both projects are shown in the data table below:

Year

Project HHH

Project BBB

0

-$90,000

-$90,000

1

$60,000

$10,000

2

$50,000

$60,000

3

$10,000

$110,000

If the minimum required rate of return is 10.80% for both projects, which one of the projects is a better choice to invest in for Holden Hotel Inc.?

Group of answer choices

a. Either project HHH or project BBB

b. Project HHH

c. Neither one of the projects

d. Project BBB

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