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An oil - drilling company must choose between two mutually exclusive extraction projects, and each requires an initial outlay at t = 0 of $
An oildrilling company must choose between two mutually exclusive extraction projects, and each requires an initial outlay at t of $ million. Under Plan A all the oil would be extracted in year, producing a cash flow at t of $ million. Under Plan B cash flows would be $ million per year for years. The firm's WACC is
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