Question: A firm is considering two projects, A and B. Each project will last for 4 years. The projected cash flows for each project are shown

A firm is considering two projects, A and B. Each project will last for 4 years. The projected cash flows for each project are shown below:

Year

0

1

2

3

4

Project A

-20

8

7

6

4

Project B

-30

10

9

10

7

If the projects are contingent, for what range of WACC would you accept BOTH projects?

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