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Question 7 (1 point) Saved Projects A and B are mutually exclusive projects with unequal lives. The cost of capital is 12% for both projects.
Question 7 (1 point) Saved Projects A and B are mutually exclusive projects with unequal lives. The cost of capital is 12% for both projects. 1 Year 0 Project A: $20 $35 1 Year 0 2 3 Project B: -$100 $35 $40 $60 Apply replacement chain to project A so that to equalize its life span to that of project B. After having done so, the cash flows of the modified project A for years 0, 1, 2, and 3 are correspondingly: a) -20, 15, 15, 35 b) -20, 35, -20,35 OC) -20,35, -15, 35 d) -20, -15, 20, 35
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