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fundamental financial management concise 9e please help me solve both with explanation 6) Sexton Inc. is considering Projects S and L, whose cash flows are
fundamental financial management concise 9e please help me solve both with explanation
6) Sexton Inc. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. If the decision is made by choosing the project with the best IRR, how much more NPV the project with the better IRR will generate over the project with the inferior IRR? IRR. L IRR, S WACC: 15.58% 18.06% 9.50% CFs CFL -$2.050 $4,300 $1,500 $1,518 1536 S1,554 $750 $760 $770 $780 a. S188.91 b. $145.46 c. $228.58 d. $226.70 e.$230.47 5) Lasik Vision Inc. recently analyzed the project whose cash flows are shown below. However fore Lasik decided to accept or reject the project, the Federal Reserve took actions that changed interest rates and therefore the firm's WACC. The Fed's action did not affect the forecasted cash flows. By how much did the change in the WACC affect the project's forecasted NPV? Note that a project's projected NPV can be negative, in which case it should be rejected Old WACC: 8.00% New WACC: 9.75% ear Cash flows $410 $410 $410 a. -$30.55 b. -$34.12 c-$32.50 d.-$28.60 e.-$29.25Step by Step Solution
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