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Practice Problem 1 1 - 4 Over - the - Top Canopies ( OTC ) is evaluating two independent investments. Project S costs $ 1
Practice Problem
OvertheTop Canopies OTC is evaluating two independent investments. Project S costs $ and has an IRR equal to percent, and Project L costs $ and has an IRR equal to percent. OTC's capital structure consists of percent debt and percent common equity, and its component costs of capital are and If OTC expects to generate $ in retained earnings this year, which projects should be purchased? Round your answers to one decimal place.
tableProjectWACC,Acceptable?S SelectL Select
Thus, should be purchased.
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