Question: Mulroney Corp. is considering two mutually exclusive projects. Both require an initial investment of $10,700 at t=0. Project X has an expected hifo of 2
Mulroney Corp. is considering two mutually exclusive projects. Both require an initial investment of $10,700 at t=0. Project X has an expected hifo of 2 years with after itax cash inflows of $6,400 and $7300 at the end of Years 1 and 2, respectively. In addition, Project X can be repented at the end of Year 2 with no chazg's in its cieh flons Project Y has an expected life of 4 years with after-tax cash inflows of $3.900 at the ead of each of the next 4 years, Each project has a WACC of 8%. Using the replacemeat chain approach, whit is the NPV of the most profitable profect? Do not round the intermediate calculations and round the final answur to the zearest whiolo numlei. a. 52.217 b. 13,231 C $2,757 d. $3,550 e. 53.010
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