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Your company is considering two investment projects, each of which requires an up-front expenditure of $15 million. You estimate that the investments will produce the
Your company is considering two investment projects, each of which requires an up-front expenditure of $15 million. You estimate that the investments will produce the following net cash flow: Year: Project A Project B
1 $5,000,000 $20,000,000
2 10,000,000 10,000,000
3 20,000,000 6,000,000
What are the two projects net present values, assuming the cost of capital is 10%?
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