Which project to recommend for expected cash flows


Project S costs $15,000, and its expected cash flows would be 4,500per year for 5 years. Mutually exclusive Project L costs 37,500,and its expected cash flows would be 11,100 per year for 5 years. If both projects have a WACC of 14 percent, which project would yourecommend? Explain.

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Finance Basics: Which project to recommend for expected cash flows
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