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Q9. Carolina Company is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and are not

Q9. Carolina Company is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and are not repeatable. WACC: 7.75%

Year 0 1 2 3 4

CFS $1,050 $675 $650

CFL $1,050 $360 $360 $360 $360

Which Project the Company should consider and why?

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