10. Problem 11.11 (Capital Budgeting Criteria: Mutually Exclusive Projects) Project 5 requires an initial outlay...

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10. Problem 11.11 (Capital Budgeting Criteria: Mutually Exclusive Projects) Project 5 requires an initial outlay at t=0 of $12,000, and its axpected cash flows would be $5,000 per year for 5 years. Mutually aiduslve Project L recuires an initial outlay at 1=0 of 346,000 , and its oxpected cash flows would be $9,100 per year for 5 years. if both projocts have a wacc of 12%, which profect would yau recommend? Select the correct answer. 3. Project t, because the NPV > NPV V5. b. Project 5 , because the NPV 5>NPVL - - Both Projects S and L, because both projects have NPVs >0. 1. Neither Projoct 5 nor L,because each project's NPY 0. Continue without saving

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