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Project L requires an initial outlay at t = 0 of $60,000, its expected cash inflows are $11,000 per year for 12 years, and its
Project L requires an initial outlay at t = 0 of $60,000, its expected cash inflows are $11,000 per year for 12 years, and its WACC is 13%. What is the project's payback? Round your answer to two decimal places.
A firm with a WACC of 10% is considering the following mutually exclusive projects
| 0 | 1 | 2 | 3 | 4 | 5 |
Project 1 | -$350 | $80 | $80 | $80 | $185 | $185 |
Project 2 | -$450 | $250 | $250 | $145 | $145 | $145 |
Which project would you recommend?
Select the correct answer.
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