Question: Question 16 16) Global has two projects, A and B, which are mutually exclusive. The cash flows of each project are as follows: Project A:-$50,-$35,
Question 16 16) Global has two projects, A and B, which are mutually exclusive. The cash flows of each project are as follows: Project A:-$50,-$35, $25, $150, $180. $135 in years 0, 1, 2, 3, 4,5 Project B: -$100,-$60, $50, $350 in years 0, 1, 2, 3 Moreover, the details of Global are as follows: 1. Global uses 40% debt and 60% equity. 2. Cost of debt = 9% per year 3. Cost of equity - 16% per year 4. Tax rate - 21% According to the NPV rule, which project(s) should you accept
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