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ABC Telecom has to choose between two mutually exclusive projects. If it chooses project A , ABC Telecom will have the opportunity to make a
ABC Telecom has to choose
between two mutually exclusive projects. If it chooses project A
ABC Telecom will have the opportunity to make a similar investment
in three years. However, if it chooses project B it will not have
the opportunity to make a second investment. The following table
lists the cash flows for these projects. If the firm uses the
replacement chain common life approach, what will be the
difference between the net present value NPV of project A and
project B assuming that both projects have a weighted average cost
of capital of
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