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has enough money to build either type of plant, and, in the absence of risk differences, accepts the project with the highest NPY. The cost
has enough money to build either type of plant, and, in the absence of risk differences, accepts the project with the highest NPY. The cost of capital is 16.9%. a. Find the NPV for each projecL Are the projects acceplable? b. Find the broakeven cash inflow for each project. d. Which project is more risky? Which project has the potentially higher NPV? Discuss the risk-return trade-offs of the two projects. a. The NPV for praject "siandard" is S (Round to the nearest cent.) The NPV for project "custom" is S assuoutaoutw (Round to the nearest cent.) Are the projects acceptable? (Select the best answer below.) b. The PMT for project "standard" is $ The PMT for project "custom" is $. (Round to the nearest cent.) answer below.) d. Which project is more risky? Which project has the potentially higher NPV? Discuss the risk-relurn trade-olfs of the two projects. (Select the best answer below.) B. Bolh project "standard" and project "custom" are echually low risk projects. C. Both project'standard" and project "custom" are equally highly risky
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