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A firm is considering two capital projects: Project Zeta and Project Omega. The firm's required rate of return is 12 percent. Required a) Compute the
A firm is considering two capital projects: Project Zeta and Project Omega. The firm's required rate of return is 12 percent. Required a) Compute the Net Present Value (NPV) for i. Project Zeta (4 marks) ii. Project Omega (4 marks) b) Which project should be purchased if the projects are mutually exclusive? Explain why. (4 marks) c) What are the advantages and disadvantages of using NPV as a capital appraisal technique (8 marks)
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