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A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 Pro-A -$400 $55 $55 $55

A firm with a WACC of 10% is considering the following mutually exclusive projects:

0 1 2 3 4 5

Pro-A -$400 $55 $55 $55 $225 $225

Pro-B -$600 $300 $300 $50 $50 $49

Which project would you recommend? Explain.

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