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Capital budgeting criteria: mutually exclusive projects Project S costs $11,000 and its expected cash flows would be $7,000 per year for 5 years. Mutually exclusive
Capital budgeting criteria: mutually exclusive projects
Project S costs $11,000 and its expected cash flows would be $7,000 per year for 5 years. Mutually exclusive Project L costs $33,500 and its expected cash flows would be $10,900 per year for 5 years. If both projects have a WACC of 12%, which project would you recommend?
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