Firm is evaluating two projects

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A firm is evaluating two projects X and Z. Project X has an initial investment of $80,000 and cash inflows at the end of each of the next five years of $25,000. Project Z has a initial investment of $120,000 and cash inflows at the end of each of the next five years of $40,000. Assume the cost of capital of 9%. Which project(s) should the firm accept if

a) projects X and Z are independent?                                                                                               

b) projects X and Z are mutually exclusive?

Reference no: EM13937179

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