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The Dandy Candy Company is considering two mutually exclusive projects. They are the only projects available. The risk-free rate is 5%. The cash flows from the projects are known with certainty and are given below:

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a) Which project has the higher net present value?

b) If the firm has no capital constraints, which project would you select?

c) If the firm has a capital constraint of $12,000, which project would you select? Why?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92001084

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