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Solution for a,b,c,d, please. Xia plans to invest any unused cash today at the risk-free interest rate of 11.6%. In one year, all cash will
Solution for a,b,c,d, please.
Xia plans to invest any unused cash today at the risk-free interest rate of 11.6%. In one year, all cash will be paid to investors and the company will be shut down. a. What is the NPV of each project? Which projects should Xia undertake and how much cash should it retain? b. What is the total value of Xia's assets (projects and cash) today? c. What cash flows will the investors in Xia receive? Based on these cash flows, what is the value of Xia today? d. Suppose Xia pays any unused cash to investors today, rather than investing it. What are the cash flows to investors in this case? Based on these cash flows, what is the value Xia today? a. What is the NPV of each project? The NPV of Project A is \$ (Round to the nearest cent.)Step by Step Solution
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