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9 0.5 Consider the following two mutually exclusive projects Year Cash Flow (A) Cash Flow (e) O -$425.000 -$40.000 1 44.000 20.400 62,000 13 300

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9 0.5 Consider the following two mutually exclusive projects Year Cash Flow (A) Cash Flow (e) O -$425.000 -$40.000 1 44.000 20.400 62,000 13 300 3 79,000 18,600 4 540.000 15.400 loo References The required return on these investments is 10 percent a. What is the payback period for each project? (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. What is the NPV for each project? (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) d. What is the profitability index for each project? (Do not round intermediate calculations and nd your answers to 3 decimal places, e.g. 32.161.) e. Based on your answers in (a) through (d), which project will you finally choose? years years a. Project A Project B b. Project A Project B c. Project A Project B d. Project A Project B % % e. 10 0.5 point Bausch Company is presented with the following two mutually exclusive projects. The required return for both projects is 19 percent Year Project M Project -$140,000 $355,000 1 63,500 152.500 2. 81,500 180.000 3 72,500 137,500 4 58,500 110.000 References a. What is the IRR for each project? (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g.. 32.16.) c. Which, if either, of the projects should the company accept? % % a. Project M Project N b. Project M Project N c. Accept project

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