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Sheridan Inc. now has the following two projects available: Project 1 Initial CF -10,626.86 -2,869.12 After-tax CF1 4,600 3,100 After-tax CF2 5,150 2,500 After-tax CF3
Sheridan Inc. now has the following two projects available: Project 1 Initial CF -10,626.86 -2,869.12 After-tax CF1 4,600 3,100 After-tax CF2 5,150 2,500 After-tax CF3 8,200 2 Assume that Rp = 3.7 percent, risk premium = 9.2 percent, and beta = 1.3. Use the chain replication approach to determine which project Sheridan 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 $ NPV2 generated over a six-year period $ should be chosen. Project 2 Project 1
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