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Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year for 5 years. Project L costs
Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year for 5 years. Project L costs $25,000 and is expected the produce cash flows of $7,400 per year for 5 years. Calculate the two projects' NPVs, IRRs, MIRRs and Pls assuming a cost of capital of 12%? Which project would be selected assuming they are mutually exclusive, using each ranking method? Which project should actually be selected
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