Consider the following mutually exclusive projects: Amounts are expressed in thousands of dollars and correspond to the
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Consider the following mutually exclusive projects:
Amounts are expressed in thousands of dollars and correspond to the cash flows expected to occur at the end of each period. Period 0 is today, period 1 is one year from today, and so on.
a. Which project should be undertaken according to their payback period?
b. Which project should be undertaken according to their NPV if the discount rate is 10 percent?
c. Which project should be undertaken according to their NPV if the discount rate is 15 percent?
d. Which project has the highest IRR?
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Related Book For
Practical Finance For Operations And Supply Chain Management
ISBN: 9780262043595
1st Edition
Authors: Alejandro Serrano, Spyros D. Lekkakos, James B. Rice
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