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25. You are asked to evaluate the following two projects for Boring Corporation using the NPV method combined with the PI approach. Which project would
25. You are asked to evaluate the following two projects for Boring Corporation using the NPV method combined with the PI approach. Which project would you select? Use a discount rate of 10 percent. Project X (DVDs of the weather reports) ($10,000 investment) Year Cash Flow 1 $5,000 2 3,000 3 4,000 4 3,600 Project Y (slow-motion replays of commercials) ($30,000 investment) Year Cash Flow 1 $15,000 2 8,000 3 9,000 11.000 473 Chanter 12: The Capital Budgeting Decision
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