1 pts Question 15 ACME company must undertake one of two possible safety projects. One...
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1 pts Question 15 ACME company must undertake one of two possible safety projects. One of these projects must be selected in order for the company to continue to operate, so it has to choose one despite the fact that it doesn't directly bring in any revenues. Trial 1 costs $1.8 million for the initial outlay and an additional $625.000 each year for the next 5 years. Trial 2 costs $2 million for the initial investment and an additional $525.000 each year for the next 5 years. ACME company initially has a WACC of 11% when the decision is made. What is the NPV of the lowest cost trial? -$3.94 million -3445 million -$412 milion 0 $3,83 million $4.28 milion
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