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7. Note the following information on the annual cash flows of two mutually exclusive projects considered by Harris Industries (Use an 8% annual discount rate):

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7. Note the following information on the annual cash flows of two mutually exclusive projects considered by Harris Industries (Use an 8% annual discount rate): Year -40,000 80,000 20,000 20.000 40 60 a. Compute the NPV of both projects b. Compute the profitability index of both projects c. Compute the payback period on both projects d. Which of the two, if either, should the company accept? Why

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