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A) What is the NPV for project A at the cost of capital? B) What is the NPV of project B at the cost of
A) What is the NPV for project A at the cost of capital?
B) What is the NPV of project B at the cost of capital?
C) With the projects independent, what projects will you accept given the firm's cost of capital? (A, B, BOTH, or NONE)
A firm is considering two projects, A and B. Each project will last for 4 years. The projects are INDEPENDENT. The projected cash flows for each project are shown below: Year 1 2 3 4 Project A -20.00 9.00 8.00 6.00 4.00 Project B -30.00 10.00 9.00 12.00 6.00 The cost of capital for the firm is 10.00%Step by Step Solution
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