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4 B D E F R 3 1 2 Points MAX: 10 3 4 5 6 Count DCF, NPV, PV, PP and IRR for following

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4 B D E F R 3 1 2 Points MAX: 10 3 4 5 6 Count DCF, NPV, PV, PP and IRR for following two options. There is expected value of incremental cash flows of each option attainable in the added table. Your task is to interpret economicaly the resulted criteria values and to make a decision into which investment (option) is better to invest. You also know that opportunity costs are estimated on the level of 9 %. In the case that making a decision based on IRR is not possible or is not useful, you should offer alternative way a) Take into consideration that these options are not mutually exclusive (so you can invest into both, only one or no one) b) Take into consideration, that these options are mutually exclusive (so it is possible to take one option or the second option but not both of them simultaneoslyl. c) Under what value of discount rate you would change your recommendation from b} situation? Investice A 0 3000 4 350 3000 1000 150 250 -1050 t CF DCF PV NPV IRR PP 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 Investice B 0 2000 4 400 420 350 360 590 350 t CF DCF PV INPV IRR PP Answer A Answer: 45 46 47 49 50 51 52 Answer C

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