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Wildhorse Inc. now has the following two projects available: Project Initial CF After-tax CF1 After-tax CF2 After-tax CF3 1 -11,265.87 5,200 6,050 9,400 2 -3,175.08
Wildhorse Inc. now has the following two projects available: Project Initial CF After-tax CF1 After-tax CF2 After-tax CF3 1 -11,265.87 5,200 6,050 9,400 2 -3,175.08 3,700 3,100 Assume that RF = 4.9 percent, risk premium = 10.4 percent, and beta = 1.3. Use the EANPV approach to determine which project Wildhorse Inc. should choose if they are mutually exclusive. (Round cost of capital and final answers to 2 decimal places, e.g.17.35% or 2 2,513.25.) PMT1 $ PMT2 $ V should be chosen
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