PROBLEM 11.1 A company is evaluating two mutually exclusive projecte. Project X will coet 10.000 now and
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PROBLEM 11.1 A company is evaluating two mutually exclusive projecte. Project X will coet 10.000 now and will generate cash flows of *5000 each year over its life of four years. Project Y will cost 2500 and will generate cash flows of 3000 each year over its life of three years. Which project would you select assuming a risk-free cost of capital of 10 per cent?
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