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Your team is working diligently to figure out which projects to accept/reject. Project A requires an initial outlay at t=0 of $17,000, and its expected
Your team is working diligently to figure out which projects to accept/reject. Project A requires an initial outlay at t=0 of $17,000, and its expected cash flows would be $5000 per year for 5 years. Mutually exclusive Project B requires an initial outlay at t=0 of $30,000, and its expected cash flows would be $8750 per year for 5 years. The firm's WACC is 12%. Which project or projects would you recommend? Project A O Project B Both projects No project should be accepted
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