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Please provide all answers for each question. Thank you Capital budgeting criteria: mutually exclusive projects A firm with a WACC of 10% is considering the
Please provide all answers for each question. Thank you
Capital budgeting criteria: mutually exclusive projects A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 $70 $70 $50 $165 $50 $165 $50 Project A -$500 $70 Project B -$400 $350 $350 Which project would you recommend? Select the correct answer. O I. Both Projects A and B, since both projects have NPV's > 0. O II. Project B, since the NPVB > NPVA. O III. Neither A or B, since each project's NPV NPVB. V. Both Projects A and B, since both projects have IRR's > 0. Capital budgeting criteria: mutually exclusive projects Project S costs $17,000 and its expected cash flows would be $7,000 per year for 5 years. Mutually exclusive Project L costs $34,000 and its expected cash flows would be $9,200 per year for 5 years. If both projects have a WACC of 12%, which project would you recommend? Select the correct answer. O O O O O I. Neither Sor L, since each project's NPV NPVS. III. Both Projects S and L, since both projects have NPV's > 0. IV. Project S, since the NPVS > NPVL V. Both Projects S and L, since both projects have IRR's > 0. IRR Project K costs $49,696.75, its expected cash inflows are $10,000 per year for 11 years, and its WACC is 10%. What is the project's IRR? Round your answer to two decimal placesStep by Step Solution
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