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Your division is considering two investment projects, each of which requires an up - front expenditure of $ 2 2 million. Project A will have
Your division is considering two investment projects, each of which requires an upfront expenditure of $ million. Project A will have cash flows of $ million in year $ million in year $ million in year and $ million in year Project B will have cash flows of $ million in year $ million in year $ million in year and $ million in year
If Projects A and B are mutually exclusive and the cost of capital is which project do you accept?
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