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Zoey Inc, Is considering Projects S and L , whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable.
Zoey Inc, Is considering Projects
S
and
L
, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. If the decision is mado by choosing the project with the shorter payback, some value may be forgone. How much value will be lost in this instance? Note that under some conditions choosing projects on the basls of the shorter paycheck will not cause value to be lost. WACC
=10%
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CF_(1)
,
CF_(1)
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