Investment proposals A and B require initial investments of $45,000 and $35,000, respectively. Both have an economic

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Investment proposals A and B require initial investments of $45,000 and $35,000, respectively. Both have an economic life of four years with no residual value. Their expected profits are as follows:

If the firm’s cost of capital is 14%, rank the proposals based on their:
a. NPVs.
b. IRRs.
c. Payback periods.

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Business Mathematics In Canada

ISBN: 978-0070009899

7th edition

Authors: Ernest Jerome

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Question Posted: Sep 21, 2024 08:02 AM

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Investment proposals A and B require initial investments of $45,000 and $35,000, respectively. Both have an economic

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Proposal A Proposal B Cumulative Cumulative Year Profit profi...View the full answer

Business Mathematics In Canada

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