Insos Corporation has three projects under consideration. The cash flows for each project appear in the following

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Insos Corporation has three projects under consideration. The cash flows for each project appear in the following table. The cost of capital for Insos is 14%.

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a. Calculate each project’s payback period. Which project is preferred?

b. Calculate each project’s net present value (NPV). Which project is preferred according to this method?

c. Comment on your findings in parts a and b, and recommend the best project.

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Principles Of Managerial Finance

ISBN: 9781292400648

16th Global Edition

Authors: Chad Zutter, Scott Smart

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