Which project should you choose if you are using Net Present Value (NPV) to decide? WACC...
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Which project should you choose if you are using Net Present Value (NPV) to decide? WACC for both projects = 8% Project L Cash Flows CFO = -$275 CF1 = $125 CF2= $130 CF3 = $140 Project S Cash Flows CFO = -$95 CF1 = $70 CF2 = $60 CF3= $55 Project L Project S Either one because both projects have the same NPV Reject both projects because they both have negative NPV's. Which project should you choose if you are using Net Present Value (NPV) to decide? WACC for both projects = 8% Project L Cash Flows CFO = -$275 CF1 = $125 CF2= $130 CF3 = $140 Project S Cash Flows CFO = -$95 CF1 = $70 CF2 = $60 CF3= $55 Project L Project S Either one because both projects have the same NPV Reject both projects because they both have negative NPV's.
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Related Book For
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date:
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