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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 5
Project S. -1,000 500 400 300 200 100
Project L -1,000 100 200 400 500 500
a. 2.87 years
b.3.04 years
c. 4.04 years
d. 4.43 years
e.3.23 years
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