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Project S costs $18,000 and its expected cash flows would be $6,000 per year for 5 years. Mutually exclusive Project L costs $25,500 and its
Project S costs $18,000 and its expected cash flows would be $6,000 per year for 5 years. Mutually exclusive Project L costs $25,500 and its expected cash flows would be $12,200 per year for 5 years. If both projects have a WACC of 12%, which project would you recommend? Select the correct answer. a.Project s, since the NPVs> NPVL b. Both Projects S and L, since both projects have IRR'S>O c. Neither Project S nor L, since each project's NPVNPVS e. Both Projects S and L, since both projects have NPVs>0
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