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Project S costs $10,000 and its expected cash flows would be $6,000 per year for 5 years. Mutually exclusive Project L costs $47,500 and its
Project S costs $10,000 and its expected cash flows would be $6,000 per year for 5 years. Mutually exclusive Project L costs $47,500 and its expected cash flows would be $8,000 per year for 5 years. If both projects have a WACC of 12%, which project would you recommend?
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