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A company is considering two mutually exclusive methods of producing a new product. a. Calculate the net present value of each alternative using the Excel
A company is considering two mutually exclusive methods of producing a new product. a. Calculate the net present value of each alternative using the Excel function. b. Calculate the benefit-cost ratio for each alternative. c. Calculate the internal rate of return for each alternative using the Excel function. d. If the company is not under capital rationing which alternative should be chosen? Why? e. Again assuming no capital rationing, suppose the company plans to produce the product f. If the company is experiencing capital rationing, and plans to terminate production when
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