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Bramble Inc. now has the following two projects available: Project Initial CF After-tax CF1 After-tax CF2 After-tax CF3 1 -12,023.49 5,400 6,350 9,800 2 -3,411.51
Bramble Inc. now has the following two projects available: Project Initial CF After-tax CF1 After-tax CF2 After-tax CF3 1 -12,023.49 5,400 6,350 9,800 2 -3,411.51 3,900 3,300 Assume that Rp = 5.3 percent, risk premium = 10.8 percent, and beta = 1.1. Use the chain replication approach to determine which project Bramble 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.) NPV1generated over a six-year period NPV2 generated over a six-year period $ A should be chosen
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