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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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