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Canfly Airlines is considering two mutually exclusive projects, Project A and Project B. The projects have the following cash flows (in millions of dollars): Year
Canfly Airlines is considering two mutually exclusive projects, Project A and Project B. The projects have the following cash flows (in millions of dollars): Year Project A Cash Flow Project B Cash Flow -$4.0 ? 2.0 1.7 3.0 3.2 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? O a. -$4.22 million O b. -$7.53 million O c. -$8.73 million O d. -$4.51 million O e. -$4.0 million 0 1 2 3
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