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A company is considering two separate mutually exclusive projects A and B . Project A requires an initial investment of $ 7 5 , 0
A company is considering two separate mutually exclusive projects A and Project A requires an initial investment of $ and is expected to generate aftertax cash flows of $ per year forever. Project requires an initial investment of $ and is expected to generate aftertax cash flows of $ per year forever. At which cost of capital are you indifferent between the two projects assuming that the cost of capital for the industry is at
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