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Blossom Inc. now has the following two projects available: Project 1 Initial CF -12,023.49 -3,411.51 After-tax CF1 5,400 3,900 After-tax CF2 6,350 3,300 After-tax CF3
Blossom Inc. now has the following two projects available: Project 1 Initial CF -12,023.49 -3,411.51 After-tax CF1 5,400 3,900 After-tax CF2 6,350 3,300 After-tax CF3 9,800 2 Assume that RF = 5.3 percent, risk premium = 10.8 percent, and beta = 1.1. Use the EANPV approach to determine which project Blossom Inc. should choose if they are mutually exclusive. (Round cost of capital and final answers to 2 decimal places, e.g. 17.35% or 2,513.25.) PMT1 $ PMT2 $ should be chosen
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