Question: A A abo AA 4 FM Assignment 2_Due on 11 July 2021-2022 summer-ERR Mac EE A 2 WACC: Year CFS CFL ttt 6. Kosovski Company
A A abo AA 4 FM Assignment 2_Due on 11 July 2021-2022 summer-ERR Mac EE A 2 WACC: Year CFS CFL ttt 6. Kosovski Company is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and are not repeatable. If the decision is made by choosing the project with the higher IRR, how much value will be forgone? Note that under some conditions choosing projects on the basis of the IRR will cause $0.00 value to be lost. (15 marks) 7.75% 0PX -$1,050 -$1,050 $675 $360 20 $650 $360 3 AaBbCcDdEe AaBbCcDdEe AaBbC | $360 $360 P 1 6. Kosovski Company is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and are not repeatable. If the decision is made by choosing the project with the higher IRR, how much value will be forgone? Note that under some conditions choosing projects on the basis of the IRR will cause $0.00 value to be lost. (15 marks) 7.75% N WACC: Year CFS CFL 0 -$1,050 -$1,050 $675 $360 96 $650 $360 30 $360 $360
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