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Please help Kelly Dunnagan, a student at CSUN has two business opportunities she can pursue upon graduation. She can choose either one, but only one
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Kelly Dunnagan, a student at CSUN has two business opportunities she can pursue upon graduation. She can choose either one, but only one of them. If her cost of capital (WACC) is 7%, which one of the two projects, if either, should she choose ? Year Project A Project B 0 ($50,000) ($50,000) 20,000 30,000 10,000 8,000 5,000 0 2 0 10,000 25,000 65,000 4 Choose Project B since it has a higher IRR Choose Project B since it has higher NPV She should not choose either of the projects Choose Project A since it has a higher NPV Choose Project A since it has a higher IRPRStep by Step Solution
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