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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 -$200 $50 $50
A firm with a WACC of 10% is considering the following mutually exclusive projects:
0 | 1 | 2 | 3 | 4 | 5 |
Project 1 | -$200 | $50 | $50 | $50 | $195 | $195 |
Project 2 | -$700 | $300 | $300 | $130 | $130 | $130 |
Which project would you recommend?
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