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Need help please! Question 4) As the director of capital budgeting for Denver Corporation, you are evaluating two mutually exclusive projects with the following net
Need help please! Question 4) As the director of capital budgeting for Denver Corporation, you are evaluating two mutually exclusive projects with the following net cash flows: Project Z Cash Flow -$100,000 10,000 30,000 40,000 60,000 Project X ear Cash Flow 0 -$100,000 50,000 40,000 30,000 10,000 2 4 If Denver's cost of capital is 15 percent, which project would you choose? Question 5) Calculate the internal rate of return (IRR) and the net present value (NPV) of a project with a 15% required return (WACC = 15%) and an initial investment of $3,500,000. The project has a life of 10 years and is expected to earn an annual free cash flow of $700,000
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