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4. A company is considering two possible investment projects. The cash flows for each of the projects are shown in the table below (all figures
4. A company is considering two possible investment projects. The cash flows for each of the projects are shown in the table below (all figures in million shillings): 9/17/2020 10:16:56 PM Page 1 of 2 (a) If equivalent investments on the market yield a 10 percent return and you are intereste d in buying the opportunity to receive the cash flows from these investments, what m aximum price would you be willing to pay for each? (b) If each of the investment opportunities costs 26,000 million shillings, and assuming t he 10 percent return prevails on each project, compute the net present value (NPV) an d Payback period (PBP) of the two alternatives and evaluate their relative attractivene ss. Comment on the ranking of the projects between the two techniques used
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