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The Ulmer Uranium Company has the opportunity to invest in one of two mutually exclusive projects. Project A costs $10 million and should project cash
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The Ulmer Uranium Company has the opportunity to invest in one of two mutually exclusive projects. Project A costs $10 million and should project cash flows of $4 per year for 5 years. Project B costs $15 million and should produce cash flows of $3.5 million for 10 years. The cost of capital is 10%. Which of these two projects should be selected? Show any calculations needed to support your answer.
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