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Your company uses the Net Present Value (NPV) of a project investment as its selection criteria. If your company's Weighted Average Cost of Capital (the
Your company uses the Net Present Value (NPV) of a project investment as its selection criteria. If your company's Weighted Average Cost of Capital (the required return on any investment) is 9%, which project(s) would be selected?
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Project A which will return 8.6% and generate $6,000,000 in revenue?
Project C, which will return 8.9% and generate $600,000 in revenue
Project B, which will return 9.3% return and generate $200,000 in revenue.
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