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An Oil-drilling company must choose between two mutually exclusive extraction projects, and each cost $12 million. Under Plan A, all the oil would be extracted

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An Oil-drilling company must choose between two mutually exclusive extraction projects, and each cost $12 million. Under Plan A, all the oil would be extracted in 1 year, producing a cash flow at $14.4 million. Under Plan B, cash flows would be $2.1 million per year for 20 years. The Firm's WACC is 11%. Calculate the firms Discounted Payback periods for Plan A and Plan B

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