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Problem 2. A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 5 + + + H

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Problem 2. A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 5 + + + H "Project 1 -- $200 575 $75 $75 $190 $190 Project 2 --5650 $250 $250 $125 $125 $125 Which project would you recommend? Explain

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