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A company is considering investing in one of two projects. The projects, known as Ashworth and Blake, each cost $8,500 today and have the following
A company is considering investing in one of two projects. The projects, known as Ashworth and Blake, each cost $8,500 today and have the following cash flows. Year Project Ashworth Project Blake 1 $0 $3,750 2 $0 $3,750 3 $0 $3,750 4 $0 $3,750 5 $0 $3,750 $3,750 6 $37,500 (a) If the required return on both projects is 11.5%, what is the Pl and the NPV for each project? (b) What is the payback period for each project? Is the payback period a sensible method to evaluate a project like Ashworth
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