Introduction to Finance

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Your first assignment in your new position as assistant financial analyst at Caledonia Products is to evaluate two new capital- budgeting proposals. Because this is your first assignment, you have been asked not only to provide a recommendation but also to respond to a number of questions aimed at assessing your understanding of the capital- budgeting process. This is a standard procedure for all new financial analysts at Caledonia, and it will serve to determine whether you are moved directly into the capital- budgeting analysis department or are provided with remedial training

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