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Question 20 5pts Arrow Electronics is considering Projects S and L which are mutually exclusive, equally risky, and not repeatable Project S has an initial
Question 20 5pts Arrow Electronics is considering Projects S and L which are mutually exclusive, equally risky, and not repeatable Project S has an initial cost of $1 million and cash inflows of $370,000 for 4 years, while Project L has an initial cost of $2 million and cash inflows of $720,000 for 4 years The CEO wants to use the IRR criterion, while the CFO favors the NPV method, using a WACC of 9.22%. You were hired toludvise the firm on the best procedure the wrong decision criterion is used, how much potential value would the frm lose? That is, what is the difference between the NPVs for these two projects? 0 and 202000
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