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Your division is considering two projects with the following cash flows. Project A costs $225 million and has cash flows of $130 million in year
Your division is considering two projects with the following cash flows. Project A costs $225 million and has cash flows of $130 million in year 1, $100 million in year 2, and $75 million in year 3. Project B costs $160 million and has cash flows of $95 million in year 1, $75 million in year 2, and $60 million in year 3. What is Project A's net present value if the WACC is 5%?
A. $39.77 million
B. $48.95 million
C. $54.30 million
D. $58.78 million
E. $71.25 million
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