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Assuming that a company has the following two mutually exclusive projects to consider. However, due to a pandemic shock to the economy, the company is
Assuming that a company has the following two mutually exclusive projects to consider. However, due to a pandemic shock to the economy, the company is facing a liquidity crisis. Which project should be chosen if both projects have a 10% cost of capital? Expected Cash Flows ($ million) Year 0 1 2 3 (S100) $60 $55 $10 $10 $10 (S100) $50 $10 $10 $10 $100 5 A B
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