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5. Epsilon Enterprises, Inc. has a WACC of 11.75% and is considering two projects S and L, whose cash flows are shown below. These projects

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5. Epsilon Enterprises, Inc. has a WACC of 11.75% and is considering two projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and repeatable. What is the crossover rate for projects S and L? 2 3 4 Year: CF for S: CF for L: 0 $ (1,295.00) $ 895.00 $ 650.00 $ (1,525.00) 595.00 350.00 $ 895.00 650.00

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