Question: A firm is considering Projects A and B, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. You
A firm is considering Projects A and B, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. You are the CFO of this firm and your responsibility is to advise your CEO that project with higher net present value. Cost of Capital: 6 % Year 0 1 2 3 4 5 6 7 CFA -$1,025 $380 $380 $380 $380 $380 $380 $500 CFB -$2,150 $765 $765 $765 $1000
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