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Can fly Airlines is considering two mutually exclusive projects, Project A and Project B. The projects have the following cash flows Project A Project B
Can fly Airlines is considering two mutually exclusive projects, Project A and Project B. The projects have the following cash flows
Project A Project B cash flow
0 -4.0 ?
1 2.0 1.7
2 3.0 3.2
3 5.0 5.8
The crossover rate of the two projects' NPV profiles is 9 percent. What is the cash flow for project B at t=0?
-8.73 million
-7.53 million
-4.22 million
-4.51 million
-4.0 million
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