Question: Project A and Project B are two mutually exclusive projects. Project A has a lifetime of 8 years while project B has a lifetime of
Project A and Project B are two mutually exclusive projects. Project A has a lifetime of 8 years while project B has a lifetime of 3 years. The current average cost of capital is 3.5 %. Using NPV method of capital budgeting, analyse what impact an increase to a high cost of capital has on each of these projects. (This is the only information I have)
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