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Oregon technology has a weighted average cost kf capital of 8.38 percent and is evaluating two projects A and B. project A involves an initial
Oregon technology has a weighted average cost kf capital of 8.38 percent and is evaluating two projects A and B. project A involves an initial investment of $37000 and an expected cash flow of $63200 in 4 years. project A is considered more risky than an average risk project at Oregon Technology, such that appropriate discounts rate for it is 5.43% points different than the discount rate used for an average risk project at Oregon technology. the internal rate of return for project A is 10.56%. Project B involves an initial investment of $71100 and expected cash flow of $112400 in 5 years. Project B is considered less risky than an average risk project at Oregon Technology, such that the appropriate discount rate for it is 1.39% points different than the discount rate used for an average risk project at Oregon technology. the internal rate of return for project B is 9.14%. what is X if X equals the NPV of project A plus the NPV of Project B?
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