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12-2: Net Present Value (NPV) Capital budgeting criteria: mutually exclusive projects Project S costs $12,000 and its expected cash flows would be $6,500 per year
12-2: Net Present Value (NPV)
Capital budgeting criteria: mutually exclusive projects
Project S costs $12,000 and its expected cash flows would be $6,500 per year for 5 years. Mutually exclusive Project L costs $40,500 and its expected cash flows would be $13,100 per year for 5 years. If both projects have a WACC of 13%, which project would you recommend?
Select the correct answer.
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