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Tulip Mania, Inc., imposes a payback cutoff of three years for its international investment projects. If the company has the following two projects available, should they accept either of them?

Year

Cash Flow (A)

Cash Flow (B)

0

-$40,000

-$60,000

1

25,000

8,000

2

10,000

20,000

3

10,000

30,000

4

5,000

425,000

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