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Over-the-Top Canoples (OTC) is evaluating two independent investments. Project 5 costs $170,000 and has an IkR equal to 0 percent, and Project L costs $160,000
Over-the-Top Canoples (OTC) is evaluating two independent investments. Project 5 costs $170,000 and has an IkR equal to 0 percent, and Project L costs $160,000 and has an 1RR equal to 6 percent, OTC's capital structure consists of 20 percent debt and 80 percent common equity, and its component costs of capital are rar =4%,rs=8%, and r0=10,5%. If OTC expects to generate $260,000 in retained earnings this yean, which project(s) should be purchased? Round your answers to one decimal place. Thus, thould be purchased
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