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please I need it urgent thanks 2. You are considering two independent projects with the following cash flows. The required return for both projects is
please I need it urgent thanks
2. You are considering two independent projects with the following cash flows. The required return for both projects is 16 percent. Given this information, which one of the following statements is correct? WN Year Project A Project B -$125,000 -$135,000 46,000 50,000 79,000 30,000 51,000 110,000 A. You should accept Project A and reject Project B based on their respective NPVs. B. You should accept Project B and reject Project A based on their respective NPVs. C. You should accept Project A and reject Project B based on their respective IRRs. D. You should accept Project B and reject Project A based on their respective IRRs. E. You should accept both projects based on both the NPV and IRR decision rules. Formulas: Constant Dividend: Po=D/R Constant dividend growth: P-D (1+g) D. -R-g Rog rearrange and solve for R R_D,(1+g). D +g= 1+g P, Po CAPM: Rg = R, +BE(E(RM)-R,) WACC = WeRe + Wa Ra(1 - T)Step by Step Solution
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