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2. Suppose, you are a financial analyst for Romeo Company. The director of capital budgeting has asked you to analyze two proposed capital investments, project

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2. Suppose, you are a financial analyst for Romeo Company. The director of capital budgeting has asked you to analyze two proposed capital investments, project X and Y. Each project has a cost of TK. 10,000, and the required rate of return for each project is 12%. The projects expected net cash flows are as follows: Year Project X (Tk) Project Y (Tk) 1 6,500 3,500 2 3,000 3,500 3 3,000 3,500 4 1,000 3,500 a) Calculate Pay-Back Period for the both projects. b) Calculate Discounted Pay-Back Period for the both projects. c) Calculate Net Present Value for the both projects. d) Calculate Internal Rate of Return for the both projects. e) On the basis of your calculations, Summarize the Results. f) On the basis of your calculations, Which project or projects should be accepted if NNASWW they are independent? g) On the basis of your calculations, Which project should be accepted if they are 2 mutually exclusive

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