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Project S requires an initial outlay at t=0 of $15,000, and its expected cash flows would be $7,000 per year for 5 years. Mutually exclusive
Project S requires an initial outlay at t=0 of $15,000, and its expected cash flows would be $7,000 per year for 5 years. Mutually exclusive Project L requires an initial outlay at t= 0 of $41,000, and its expected cash flows would be $13,000 per year for 5 years. If both projects have a WACC of 12%, which project would you recommend? Select the correct answer. a. Both Projects S and L, because both projects have IRR's >0. b. Both Projects S and L, because both projects have NPV's >0. c. Project L, because the NPVL>NPVS. d. Project S, because the NPV S > NPV . . Neither Project S nor L, because each project's NPV
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