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whats the answer to C please XGa plans to invest any unused cash today at the risk-tree interest rate of 11.7%, In one year, all
whats the answer to C please
XGa plans to invest any unused cash today at the risk-tree interest rate of 11.7%, In one year, all cash will be paid to investors and the company will be shut down a. What is the NPY of each project? Which projects should Xia undertake and how much cash should it retain? b. What is the total value of Xia's assets (projects and cash) today? c. What cash fows will the investors in Xa receive? Based on these cash flows, what is the value of Xia today? d. Suppose Xa pays any unused cash to investors today, rather than iavesting it. What are the cash flows to investors in this case? Based on these cash flows, what is the value of Xia today e. Expiain the relationship in your answers to parts (b), (c), and (d). Which projects should Xia undertake and how much cash should 7 retain? (Solect all the correct choices) Step by Step Solution
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