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Project S costs $12,000 and its expected cash flows would be $4,500 per year for 5 years. Mutually exclusive Project L costs $49,500 and its
Project S costs $12,000 and its expected cash flows would be $4,500 per year for 5 years. Mutually exclusive Project L costs $49,500 and its expected cash flows would be $11,500 per year for 5 years. If both projects have a WACC of 16%, which project would you recommend? Select the correct answer. Oa. Project S, since the NPVS > NPVL. Ob. Project L, since the NPVL > NPVS. Oc. Both Projects S and L, since both projects have NPV's > 0. Od. Neither Project S nor L, since each project's NPV 0
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