A firm is considering two projects. Both have an initial investment of $1,000,000 and pay off over

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A firm is considering two projects. Both have an initial investment of $1,000,000 and pay off over the next 5 years in this fashion. The cost of capital is 8 percent.

a. Which of these has a faster payback period?
b. Which of these options has a higher net present value?
c. Which of these options has a higher internal rate of return (IRR)?

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Accounting Information Systems

ISBN: 9781260571080

3rd International Edition

Authors: Vernon Richardson

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