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11-7 Capital budgeting criteria A firm with a 14 percent WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation,
11-7 Capital budgeting criteria A firm with a 14 percent WACC is evaluating two projects for this year's
capital budget. After-tax cash flows, including depreciation, are as follows:
0 1 2 3 4 5
Project A -$6,000 $2,000 $2,000 $2,000 $2,000 $2,000
Project A -$18,000 $5,600 $5,600 $5,600 $5,600 $5,600
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