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A firm is considering two mutually exclusive investment alternatives, both of which cost $5,000. The firm's hurdle rate is 12 percent. The after-tax cash flows

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A firm is considering two mutually exclusive investment alternatives, both of which cost $5,000. The firm's hurdle rate is 12 percent. The after-tax cash flows associated with each investment are: Year Investment A Investment B 1 $ 2,000 $2,000 2 1,700 1,500 3 1,500 2,000 4 1,000 3, 000 For each alternative, calculate the payback period, the net present value, and the internal rate of return. Which alternative (if any) should be selected

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