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A company has a 11% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 0 1 2
A company has a 11% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows:
0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
Project A | -$300 | -$387 | -$193 | -$100 | $600 | $600 | $850 | -$180 |
Project B | -$405 | $135 | $135 | $135 | $135 | $135 | $135 | $0 |
The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.
Eval Online strustured Activityi Cagital budgeting criteria Hrolect ai 1 frosiect bi 5 Bripert int Cripentini Bripectail If the WACC wras 18%, which project would be selected? Project Ax. Project bi rave nBl4 70 Dscotunt RatesStep by Step Solution
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