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A). You are evaluating a project with the following cash flows: initial investment is $-12, and the expected cash flows for years 1 - 3

A).

You are evaluating a project with the following cash flows: initial investment is $-12, and the expected cash flows for years 1 - 3 are $10, $11 and $17 (all cash flows are in millions of dollars). What is this projects NPV? The company's WACC is 10%.

B).

You are evaluating a project with an initial investment of $16.9 million dollars, and expected cash flows of $7 million dollars each for years 1-3. What is the project's simple payback? The corporate WACC is 10%

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