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Globex Corp, has to choose between two mutually exclusive projects. If it chooses project A Globex Corp. will have the opportunity to make a simila

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Globex Corp, has to choose between two mutually exclusive projects. If it chooses project A Globex Corp. will have the opportunity to make a simila Investment in three years. However, if it chooses project B, it will not have the opportunity to make a second investment. The following table lists the cash flows for these projects. If the firm uses the replacement chain (common lle) approach, what will be the difference between the net present value (NPV) of project A and project B, assuming that both projects have a welghted average cost of capital of 12%7 Cash Flow Project A Year 0 Project B Year 0: - $40,000 Year 1: Year 1: 8,000 -$10,000 7,000 15,000 14000 Year 2: Year 2: 15,000 Year 3: Year 3: Year 4: 14,000 13,000 12,000 11,000 Year 5 Year 6: $16,049

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