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Utah Technology has a weighted - average cost of capital of 8 . 3 7 percent and is evaluating two projects: A and B .

Utah Technology has a weighted-average cost of capital of 8.37 percent and is evaluating two projects: A and B. Project A involves an initial investment of $35,500.00 and an expected cash flow of $63,100.00 in 4 years. Project A is considered more risky than an average-risk project at Utah Technology, such that the appropriate discount rate for it is 5.83 percentage points different than the discount rate used for an average-risk project at Utah Technology. The internal rate of return for project A is 10.19 percent. Project B involves an initial investment of $70,300.00 and an expected cash flow of $119,200.00 in 5 years. Project B is considered less risky than an average-risk project at Utah Technology, such that the appropriate discount rate for it is 1.93 percentage points different than the discount rate used for an average-risk project at Utah Technology. The internal rate of return for project B is 9.83 percent. What is X if X equals the NPV of project A plus the NPV of project B? $11590.07(plus or minus $10) $18546.52(plus or minus $10) $19700.24(plus or minus $10) $24289.09(plus or minus $10) None of the above is within $10 of the correct answer

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