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A firm with a WACC of 10% is considering the following mutually exclusive projects: Year 0 Year 1 Year 2 Year 3 Year 4 Year
A firm with a WACC of 10% is considering the following mutually exclusive projects:
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Project 1 | -$400 | $40 | $40 | $40 | $240 | $240 |
Project 2 | -$550 | $200 | $200 | $105 | $105 | $105 |
Which project would you recommend?
Select the correct answer.
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