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A firm with an 11% WACC is evaluating two mutually exclusive projects with the following cash flows (in millions); calculate the discounted payback for the
A firm with an 11% WACC is evaluating two mutually exclusive projects with the following cash flows (in millions); calculate the discounted payback for the project that maximizes shareholder value.
t = | 0 | 1 | 2 | 3 | 4 |
Project X | -700 | 400 | 250 | 250 | 200 |
Project Y | -700 | 100 | 250 | 350 | 450 |
Group of answer choices
2.75 years
3.24 years
3.40 years
2.88 years
3.08 years
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