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4. Three are three projects listed below. The firm's required rate of return is 13%. Year Project AB Project LM Project UV $ (90,000) $(100,000)

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4. Three are three projects listed below. The firm's required rate of return is 13%. Year Project AB Project LM Project UV $ (90,000) $(100,000) $(96,500) 39,000 (55,000) 39,000 100,000 39,000 147,500 100,000 a) Compute net present value and internal rate of return of each project Project AB L M UV NPV IRR b) If three projects are mutually exclusive, which one should be chosen? c) What is the discount rate when NPVA equals NPV (i.e., crossover rate)? ACF0= ACF1= ACF2= ACF3= IRR= d) Compute the traditional payback period for each project. e) Please follow the steps below to compute modified IRR (MIRR) of Project UV. 1) PV of cash outflows: 2) FV of cash inflows: 3) MIRR

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