Question: Question 1 0 ( 2 points ) Kingston Utilities is evaluating two projects. The first project has net after - tax cash inflows of

Question 10(2 points) Kingston Utilities is evaluating two projects. The first project has net after-tax cash inflows of \(\$ 72396\) per year starting at the end of year 1. The upfront cost of the project is \(\$ 226000\) and its expected life is 5 years. The board rejects the project becasue "the project's IRR is exactly \(1\%\) lower than our weighted average cost of capital". The second project has an initial cost of \(\$ 215000\) with the same expected life. Assuming project \( B \) has the same risk level as project \( A \), what's the minmal required after-tax cash inflow of project \( B \) for the board to accept project \( B \)(i.e. for project B to break even)? The answer is 67320.32 The answer is 68872.3 The answer is 70436.81 The answer is 68096.31
Question 1 0 ( 2 points ) Kingston Utilities is

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