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4. McConachie Company is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable.

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4. McConachie Company is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. [20 points in total] CFS Year 0 1 2 3 -$1,000 $420 $420 $420 CFL -$2,000 $850 $850 $850 I a. What is the crossover rate? [4 points] b. If the WACC is 10%. What are the projects" NPVs? Which project should the company invest in? [8 points) c. If the decision is made based on MIRR. Which project should the company invest in? [8 points)

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