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Your division is considering two investment projects, each of which requires an up-front expenditure of $25 million. You estimate of capital is 10% and that

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Your division is considering two investment projects, each of which requires an up-front expenditure of $25 million. You estimate of capital is 10% and that the investments will produce the following after-tax cash flows (in millions of dollars): Year Project A Project B 10 15 (0) 29 20 What are the payback periods for the two projects? What are the BBs of the two projects? If the two projects are mutually exclusive and the cost of capital is 5%, which project should the firm undertake? that nanlants are mutually exclusive and the cost of capital is 15%, which project should the firm undertake

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