Ch $11$: End$-$of$-$Chapter Problems$-$LPK $-$ The Basics of Capital Budgeting

$3$ack to Assignment

Attempts $$ Keep the Highest $/5$

$9.$ Problem $11\mathrm{.}11($Capital Budgeting Criteria: Mutually Exclusive Projects$)$

$$ eBook $$10,150$ per year for $5$ years. If both projects have a WACC of $14\%,$ which project would you recommend?

Select the correct answer.

$q,$ a$.$ Both Projects S and L $,$ because both projects have IRR's $>0.$

$3.$ Neither Project $S$ nor $L,$ because each project's NPV

:$.$ Project S $,$ because the $NP{V}_S>NP{V}_L.$

Both Projects $S$ and $L,$ because both projects have NPV$\text{'}$s $>0.$

Project $L,$ because the $NP{V}_L>NP{V}_S.$

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