Selecting the project


Problem:

Project S
Costs = $15,000
Cash Flow = $4500 per year for 5 years
WACC = 14%

Mutually exclusive

Project L
Costs = $37,500
Cash Flow = $11,100 per year for 5 years
WACC = 14%

Which project should be selected?

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Finance Basics: Selecting the project
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