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5. The Kitchen Inc. is considering the following 3 mutually exclusive projects. The cost of capital of the company is 12% and the projected cash
5. The Kitchen Inc. is considering the following 3 mutually exclusive projects. The cost of capital of the company is 12% and the projected cash flows for these ventures are as follows: Plan A Plan B Plan C Initial Outlay = $3,600,000 Cash Flow: Initial Outlay = $6,000,000 Initial Outlay = $3,500,00 Yr 1 = $-0- Cash Flow: Yr 1 = $4,000,000 Yr 2 = 3,000,000 Yr 3 = 2,000,000 Yr 4 = -0- Cash Flow: Yr 1 = $2,000,000 Yr 2 = -0- Yr 2 = -0- Yr 3 = -0- Yr 4 = -0- Yr 3 = 2,000,000 Yr 4 = 2,000,000 Yr 5 = 2,000,000 Yr 5 = $7,000,000 Yr 5 = -0- Which project should be accepted and why
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