Project S requires an initial outlay at t = 0 of $20,000, and its expected...
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Project S requires an initial outlay at t = 0 of $20,000, and its expected cash flows would be $4,500 per year for 5 years. Mutually exclusive Project L requires an initial outlay at t = 0 of $31,000, and its expected cash flows would be $13,850 per year for 5 years. If both projects have a WACC of 13%, which project would you recommend?
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