Question: A firm is considering Projects A and B. These projects are mutually exclusive, equally risky, and not repeatable and their cash flows are shown below.
A firm is considering Projects A and B. These projects are mutually exclusive, equally risky, and not repeatable and their cash flows are shown below. At the discount rate of the NPV of A equals the NPV of B. Year CFL CFS 0 $1,025 $1,025 1 $600 $100 2 $150 $200 3 $250 $600 4 $50 $750
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