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Business, 08.11.2019 06:31 zuleidysnegron

Mulroney corp. is considering two mutually exclusive projects. both require an initial investment of $10,000 at t = 0. project x has an expected life of 2 years with after-tax cash inflows of $6,000 and $7,900 at the end of years 1 and 2, respectively. in addition, project x can be repeated at the end of year 2 with no changes in its cash flows. project y has an expected life of 4 years with after-tax cash inflows of $4,300 at the end of each of the next 4 years. each project has a wacc of 8%. using the replacement chain approach, what is the npv of the most profitable project? a. $4,242b. $4,246c. $4,286d. $4,325e. $4,433

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