Question: Assume there are 2 projects Large (L) and Small (S) & WACC=15%. The Large project cashflows at time 0, 1, 2, 3 and 4 respectively
Assume there are 2 projects Large (L) and Small (S) & WACC=15%. The Large project cashflows at time 0, 1, 2, 3 and 4 respectively are: -1000, 250, 350, 400, 500. The Small project cashflows at time 0, 1, 2, 3 and 4 respectively are: -105, 25, 50, 50, 50. Assume the projects are mutually exclusive and Jack selects project(s) based on NPV. What is the NPV of his selection? round to nearest cents
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