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A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 Project 1 -$250 $40 $40

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

0 1 2 3 4 5
Project 1 -$250 $40 $40 $40 $185 $185
Project 2 -$700 $250 $250 $135 $135 $135

Which project would you recommend?

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