Question: Project S costs $ 1 5 , 0 0 0 , and its expected cash flows would be $ 4 , 5 0 0 per
Project S costs $ and its expected cash flows would be $ per year for years. Mutually exclusive Project L costs $ and its expected cash flows would be $ per year for years. If both projects have a WACC of which projects would be accepted?
A Project and Project would be both accepted.
B The information provided is not enough to make a decision.
C Neither Project S or Project L would be accepted.
D Project L would be accepted.
E Project would be accepted.
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