Question
Hindeling Inc. is considering Projects S and L, whose cash flows are shown below. These projects mutually exclusive, equally risky, and not repeatable. The CFO
Hindeling Inc. is considering Projects S and L, whose cash flows are shown below. These projects mutually exclusive, equally risky, and not repeatable. The CFO wants to use the NPV method. Which project would you recomment? Why?
WACC: 6.00%
| YEAR | 0 | 1 | 2 | 3 | 4 |
| CFS | -$1,025 | $380 | $380 | $380 | $380 |
| CFL | -$2,150 | $765 | $765 | $765 | $765 |
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Finance Capital Markets Financial Management And Investment Management
Authors: Frank J. Fabozzi, Pamela Peterson Drake
1st Edition
0470407352, 978-0470407356
