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7,170 e. You are considering the following two mutually exclusive projects. The required rate of return is 13 percent for the project A and 10.5
7,170 e. You are considering the following two mutually exclusive projects. The required rate of return is 13 percent for the project A and 10.5 percent for the project B. Prove with computation which the project to accept. Support your answer using NPV, IRR, cash payback period, and profitability index methods. Year 0 1 Project A $ (54,000) $ 36,300 $ 24,600 $ 9,500 Project B $ (78,000) $ 35,700 $ 62,800 $ 0 2 3 6 Q. VI {13 marks)
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