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A firm with a 10% WACC is evaluating two projects for this year's capital budget. After-tax cash flows are as follows: Time 0 Year 1

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A firm with a 10% WACC is evaluating two projects for this year's capital budget. After-tax cash flows are as follows: Time 0 Year 1 Year 2 Year 3 Year 4 Year 5 Project A - 6,000 2,000 3,000 2,500 4,000 4,500 Project B -18,000 5,600 5,600 7,000 7,200 8,000

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