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02. below: below: M/s Sons & Sons is considering two projects, A&B, with cash flows as shown period 0 Cash Flow of Project A Project
02. below: below: M/s Sons & Sons is considering two projects, A&B, with cash flows as shown period 0 Cash Flow of Project A Project B -90,000 -150,000 30,000 72,000 30,000 35,000 50,000 40,000 30,000 25,000 2 3 4 a. b b Calculate discounted payback period, net present value and internal rate of return for each project using opportunity cost of capital 13 % & 9% for project A & B respectively (1 Marks) Which project(s) should be accepted if: (1 Marks) The projects are mutually exclusive and there is no capital constraint. The projects are independent and there is no capital constraint. The projects are independent and there is a total of $100,000 of financing for capital outlays in the coming period. Why the cost of capital for A might be higher than for B. State possible reason(s) (1 Marks) (iii) C
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