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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 0 1 2. 3 Project A Cash Flow -$4.0 2.0 3.0 5.0 Project B Cash Flow ? 1.7 3.2 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? A) -$4.00 mill B -$4.22 mill C) -$4.51 mill D) -$8.73 mill E) Insufficient information
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