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Ford Industries is evaluating two mutually exclusive projects with the following net cash flows: Ford's WACC is 8.7% and both projects have the same risk
Ford Industries is evaluating two mutually exclusive projects with the following net cash flows: Ford's WACC is 8.7% and both projects have the same risk as the firm's average project. Calculate each project's net present value (NPV). NPV_A = NPV_B = Ford's CFO has instructed managers to use the IRR method when choosing between mutually exclusive projects. If managers choose the project with the highest IRR, how much value will be lost? $47.57 $30.37 $0.00 $51.98 $43.20
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