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A company is evaluating two different projects, both of which cost $25 million and last 6 years. Both projects have positive NPVs when using a cost of capital of 18%, and using that cost of capital makes Project A’s Profitability Index 1.25 and Project B’s Profitability Index 1.30. Their NPVs are the same when using a cost of capital of 15%. 13. What is the NPV for each project?

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Financial Management, Finance

Category:- Financial Management
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