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Skysong Inc. now has the following two projects available: Project 1 2 Initial CF -12,319.48 -3,552.39 After-tax CF1 5,700 4,200 After-tax CF2 6,800 3,600 After-tax
Skysong Inc. now has the following two projects available: Project 1 2 Initial CF -12,319.48 -3,552.39 After-tax CF1 5,700 4,200 After-tax CF2 6,800 3,600 After-tax CF3 10,400 Assume that RF = 5.9 percent, risk premium = 11.4 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, eg.17.35% or 2,513.25.) NPV1 generated over a six-year period $ $ NPV2 generated over a six-year period $ $ should be chosen. Skysong Inc. now has the following two projects available: Project 1 2 Initial CF -12,319.48 -3,552.39 After-tax CF1 5,700 4,200 After-tax CF2 6,800 3,600 After-tax CF3 10,400 Assume that RF = 5.9 percent, risk premium = 11.4 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, eg.17.35% or 2,513.25.) NPV1 generated over a six-year period $ $ NPV2 generated over a six-year period $ $ should be chosen
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