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Consider the following cash flows from different projects and assume the cost of capital is 12%: n A B C D 0 -$3500 -$5000 -$7500

Consider the following cash flows from different projects and assume the cost of capital is 12%:


n A B C D
0 -$3500 -$5000 -$7500 -$4000
1 800 2000 2000 5000
2 800 1500 2000 3000
3 800 1500 2000 -2500
4 800 500 4000 -1000
5 800 500 5000 1000
6 800 1500 2000
7 800 3000
8 800

a). Calculate the payback period for each project.

b). Determine whether it is meaningful to calculate a payback period for the project D.

c). Calculate the discounted payback period for each project.

d). Calculate the NPV of each project.
e). Calculate Profitability Index of each project.

f). calculate the IRR for each prject


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