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Project S costs $14,000 and its expected cash flows would be $6,000 per year for 5 years. Mutually exclusive Project L costs $33,500 and its
Project S costs $14,000 and its expected cash flows would be $6,000 per year for 5 years. Mutually exclusive Project L costs $33,500 and its expected cash flows would be $9,000 per year for 5 years. If both projects have a WACC of 15%, which project would you recommend? Select the correct answer. a. Project L, since the NPVL>NPV. b. Neither Project S nor L, since each project's NPVNPV. d. Both Projects S and L, since both projects have NPV's >0. e. Both Projects S and L, since both projects have IRR'S >0
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