Question: Problem: Your division is considering two investment projects, each requires an upfrost expenditue of S21 million You assume also that the investments will produce the

Problem: Your division is considering two investment projects, each requires an upfrost expenditue of S21 million You assume also that the investments will produce the following after tax cash flows (in millions of dollars) Year 1 2 3 4 Project A 2 9 12 17 Project B 15 9 6 3 a Using NPV, if the two projects are mutually exclusive and the cost of capital is 14%, which project or projects should be accepted? Draw the NPV profile of the two projects Using the profile in partw. if the two projects are mutually exclusive which project should be adopted when WACC-10969

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