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A company is considering two alternative investment opportunities, each of which requires an initial cash outlay of $110,000. The expected net cash flows from the
A company is considering two alternative investment opportunities, each of which requires an initial cash outlay of $110,000. The expected net cash flows from the two projects follow: Use the table values below to find the net present value of the cash flows associated with each project, discounted at 12% (Show work): What is each project's payback period? Based on the net present values, and assuming the same discount rate (greater than zero) is required for both projects, which project is the better investment or are they equally beneficial. Give two reasons for your decision
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