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1. Compare the two investments and calculate payback period, internal rate of return, and net present value. Assume a 10% cost of capital. Which investment

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1. Compare the two investments and calculate payback period, internal rate of return, and net present value. Assume a 10% cost of capital. Which investment would you recommend? Explain. Investment A Investment B Initial cost $10,000 $50,000 Net cash revenues: Year 1 $15,000 0 Year 2 $15,000 $5,000 Year 3 $15,000 $10,000 Year 4 $15,000 $60,000 Year 5 $15,000 $65,000 Year 6 $15,000 $70,000 Terminal value $ 8,000 $30,000 Investment A Investment B Payback Period Net Present Value IRR

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