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Teal Inc. now has the following two projects available: Project Initial CF 1 After-tax CF1 4,800 3,300 After-tax CF3 8,600 -11,337 -3,092 After-tax CF2 5,450
Teal Inc. now has the following two projects available: Project Initial CF 1 After-tax CF1 4,800 3,300 After-tax CF3 8,600 -11,337 -3,092 After-tax CF2 5,450 2,700 2 Assume that Rp = 4.1%, risk premium = 9.6%, and beta = 1.1. Use the chain replication approach to determine which project(s) Teal Inc. should choose if they are mutually exclusive. (Round cost of capital to 2 decimal places, e.g.17.35% and the final answers to o decimal places, e.g. 2,513.) NPV1 generated over a six-year period NPV2 generated over a six-year period should be chosen
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