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e. At what cost of capital would a firm be indifferent between the two projects based on their NPVs? What is this WACC rate called?

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e. At what cost of capital would a firm be indifferent between the two projects based on their NPVs? What is this WACC rate called? What is the relevant range of discount rates where you would accept project M and at what discount rates would project T be accepted if they are mutually exclusive?

Consider the following projects with a cost of capital = 14%: Year Project M Project T? 0 -$250,000 -$320,000 1 150,000 110,000 2 100,000 150,000 3 70,000 170,000

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