Abc has been considering two mutually exclusive projects, Financial Management

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Abc has been considering two mutually exclusive projects

ABC has been considering two mutually exclusive projects with the following NPVs and project lives. Project NPV Economic Life A 5,000 3 years B 6,500 5 years ABC’s cost of capital is 15%. Assuming that projects can be repeated with the same cash flow and risk profiles what would be the respective Net Terminal Values of projects A and B (round to the next integer)? What should be the decision?

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Financial Management: Abc has been considering two mutually exclusive projects

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