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Project S requires an initial outlay at t = 0 of $13,000, and its expected cash flows would be $5,000 per year for 5 years.
Project S requires an initial outlay at t = 0 of $13,000, and its expected cash flows would be $5,000 per year for 5 years. Mutually exclusive Project L requires an initial outlay at t = 0 of $31,500, and its expected cash flows would be $10,250 per year for 5 years. If both projects have a WACC of 15%, which project would you recommend? Select the correct answer. O a. Both Projects and since both projects have IRR's > 0. b. Project S, since the NPVS > NPV 6. Project L, since the NPV > NPV d. Both Projects and since both projects have NPV's > 0 e. Neither Project Snor, since each project's NPV
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