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4%, rs 7%, and re = 10.5%. If Over-the-Top Canopies (OTC) is evaluating two independent investments. Project S costs $165,000 and has an IRR
4%, rs 7%, and re = 10.5%. If Over-the-Top Canopies (OTC) is evaluating two independent investments. Project S costs $165,000 and has an IRR equal to 8 percent, and Project L costs $155,000 and has an IRR equal to 6 percent. OTC's capital structure consists of 20 percent debt and 80 percent common equity, and its component costs of capital are rot OTC expects to generate $250,000 in retained earnings this year, which project(s) should be purchased? Round your answers to one decimal place. Project S WACC Acceptable? % -Select- -Select- Thus, -Select- % should be purchased.
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