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12. Quattro, Inc. has the following mutually exclusive projects available. The required return is 11 percent. a) Which project, if any, should the company accept?

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12. Quattro, Inc. has the following mutually exclusive projects available. The required return is 11 percent. a) Which project, if any, should the company accept? (Use the NPV method) $82.000 15,700 18,300 23,900 26.200 32.100 $125,000 38,600 33,400 31.200 27.500 24,000 (b) Which project, if any, should the company accept assuming that these are independent projects? 3. You are considering the following two mutually exclusive projects. The required return on each project is Which project (if any) should you accept and what is the reason for that decision? Explain. 14 Project A Project $24,000 $24.000 7.000 9.000 18.000 9,000 12.000 10.000 14. A project has the following cash flows. What is the internal rate of return (IRR)? If the WACC 12% would you accept the project? Years Cash flow -$71.000 8,400 2 3 21.900 28.300 33.300

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