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3 points Save Answer Use the following information to solve the next ten (10) questions (Questions 26-35). Show your work for question for partial credit.

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3 points Save Answer Use the following information to solve the next ten (10) questions (Questions 26-35). Show your work for question for partial credit. (3 points each) Big Company is evaluating two projects, Project A and Project B. Both projects are of equal risk. Big Company has a WACC of 10%. The expected Free Cash Flows of the projects are as follows: Period Annual Cash Flows Project "A" Annual Cash Flows Project "B" 0 ($25,000) ($25,000) 1 5,000 20,000 2 10,000 10,000 3 15,000 8,000 4 20,000 6,000 Compute the Net Present Value of Project "A". Cor the toolbar AITI QUESTION 28 3 points Save Answer The Net Present Value of Project "B" is $11,554.88. If Projects "A" and "B" are mutually exclusive, considering only at the NPV method, which project(s) should Big Company proceed with? Explain your answer For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 10pt TE 86 a Q v . x X2 ST T HO + RBC V v 1 49 92 x E. EX E (0) 2 RA + P O WORDS POWERED BY TINY Big Company is evaluating two projects, Project A and Project B. Both projects are of equal risk. Big Company has a WACC of 10%. The expected Free Cash Flows of the projects are as follows: Period Annual Cash Flows Project "A" Annual Cash Flows Project "B" 0 ($25,000) ($25,000) 1 5,000 20,000 2 10,000 10,000 3 15,000 8,000 4 20,000 6,000 Compute the Internal Rate of Return of Project "A". For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). QUESTION 30 3 points Save Answer The Internal Rate of Return of Project "B" is 36.15%. If Projects "A" and "B" are independent, considering only at the IRR method, which project(s) should Big Company proceed with? Explain your answer. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BI V S Paragraph Arial 10pt : v T a v o ma = X2 X2 TTT - ABC + TT 992 FA x x --- THE E 0) ? 2 + P O WORDS POWERED BY TINY

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