Question
A firm with a WACC of 10% is considering the following mutally exclusive projects: Project A: year 0=-200, year 1=75, year 2=75, year 3=75, year
A firm with a WACC of 10% is considering the following mutally exclusive projects:
Project A: year 0=-200, year 1=75, year 2=75, year 3=75, year 4=190, and year 5=190
Project B: year 0--650, year 1=250, year 2=250 year 3=125, year 4=125 and year 5=125
Which project would you recommend? Explain?
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A Practical Guide To Quantitative Finance Interviews
Authors: Xinfeng Zhou
1st Edition
1735028800, 978-1735028804
