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Question 8 of 8 < > View Policies Current Attempt in Progress Skysong Inc. now has the following two projects available: -/1 121 |||
Question 8 of 8 < > View Policies Current Attempt in Progress Skysong Inc. now has the following two projects available: -/1 121 ||| = Project Initial CF After-tax CF1 After-tax CF2 After-tax CF3 1 -10,942.35 4,500 8,000 2 -2,911.82 3,000 5,000 2,400 Assume that RF = 3.5 percent, risk premium = 9.0 percent, and beta = 1.1. Use the chain replication approach to determine which project Skysong Inc. should choose if they are mutually exclusive. (Round cost of capital and final answers to 2 decimal places, e.g.17.35% or 2,513.25.) NPV1 generated over a six-year period $ NPV 2 generated over a six-year period $ should be chosen.
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