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Analysis of Capital Investments
Isabel Fuentes, Student (University), United States, Member
Should a firm accept the independent projects described below? Why or why not?
A) the firmīs cost of capital is 10 % and the estimated internal rate of return of the project is 11 %.
B) a capital investment requires a $150,000 initial investment. The firmīs cost of capital is 10%, and the present value of the expected cash inflows from the project is $148,000.
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Special Interest Group Leader
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Cost of Capital
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