CAPITAL BUDGETING CRITERIA: MUTUALLY EXCLUSIVE PROJECTS A firm with a WACC of 10% is considering the following

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CAPITAL BUDGETING CRITERIA: MUTUALLY EXCLUSIVE PROJECTS A firm with a WACC of 10% is considering the following mutually exclusive projects:

0 2 3

$225

$49

$225

$50

$55

$50

$55

$300

$55

$300 2$400 2$600 Project A Project B 1 4 5 Which project would you recommend? Explain.

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