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4. Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$300,000 -$40,000 1 $15,000 $22,000 2 $55,000 $9,000 3

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4. Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$300,000 -$40,000 1 $15,000 $22,000 2 $55,000 $9,000 3 $65,000 $5,000 4 $395,000 $25,500 You require a 12% return on both investments, a. What is the payback period of each of the project? (3 Points) b. What is the discounted payback period of each of the project? (3 Points) c. What is the NPV of each of the project? (3 Points) d. What is the IRR of each of the project? (3 Points) e. What is the profitability index (PI) of each of the project? (3 Points) f. Which projeet should you choose based on the above calculations? (1-Point)

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