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2. As a nancial analyst of Homeland Company you are asked to analyze two proposed capital investment project that is investment in Fast Food Business

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2. As a nancial analyst of Homeland Company you are asked to analyze two proposed capital investment project that is investment in Fast Food Business and Transportation Business. Each project has a cost of Tk. 6,00,000 and the expected net cash ows are as follows: ii) iii) iv) Expected Net Cash Flows Year Fast Food Transportation 1 75,000 2,00,000 2 82,000 200,000 3 2,80,000 2,00,000 4 3,50,000 2,00,000 Calculate the pay back period for each project (Industry standard is 3.5 years) Ifthe required rate of return is 10.5 % then calculate the NPV for each project. Calculate the protability index for these projects. Would you accept the project if they are independent? Which project should be accepted if they are mutually exclusive

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