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You are to decide between two mutually exclusive projects. The first has an initial investment of $25 million, and FCFs of $10 million for the
You are to decide between two mutually exclusive projects. The first has an initial investment of $25 million, and FCFs of $10 million for the next 3 years. The second has an initial investment of $25 million and FCFs of $15 million in the first year, -$5 million in the second year, and $20 million in the third year. The cost of capital for either project is 9%.
- Select between the two projects using: NPV and Profitability Index.
- Select between the two projects using MIRR.
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