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FB Company is considering investing in two construction projects, and he developed the following estimates of the cash flows. His required return is 10% and
FB Company is considering investing in two construction projects, and he developed the following estimates of the cash flows. His required return is 10% and views these projects as equally risky.
Year Project 1 cash flows Project 2 cash flows 0 -$550,000 -$700,000 1 $150,000 $200,000 23 2 $200,000 $150,000 3 $150,000 $250,000 4 $150,000 $150,000 5 $100,000 $150,000
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