Question: ABC is considering Projects S and L. These projects are mutually exclusive, equally risky, and not repeatable and their cash flows are shown below. At

 ABC is considering Projects S and L. These projects are mutually

ABC is considering Projects S and L. 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 Sequals the NPV of L. Year CFL CFS 0 -$1,025 -$1,025 1 $600 $100 2 $150 $200 $250 $600 $50 $750 3

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