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The following are free cash flows for businesses X and Y:YearsProject XProject YYear 1 $ 8 , 5 0 0 $ 7 , 0 0
The following are free cash flows for businesses X and Y:YearsProject XProject YYear $$Year Year Year Total Assuming the costing of both projects has a cost of capital, which project will be the most profitable from the investors perspective. Hint: think about PV & FVb If you are buying in the investment which will you choose? WhyIf you are sellinf the investment which will you choose? Why?
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