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A&B Enterprises is trying to select the best investment from among four alternatives. Each alternative involves an initial outlay of $100,000. Their cash flows follow

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A&B Enterprises is trying to select the best investment from among four alternatives. Each alternative involves an initial outlay of $100,000. Their cash flows follow ed out of question Year A B D 1 $10,000 20,000 $25,000 $0 2 $50,000 40,000 30,000 25,000 0 3 30,000 45,000 4 40,000 0 25,000 25,000 25,000 55,000 5 50,000 0 60,000 Evaluate each alternative based on a) Payback period, [4 marks, b2] b) Net present value (use a 10% discount rate). [4 marks, b2] c) Internal rate of return [4 marks, b2] d) Use the evaluation above and generate a ranking of the projects based on each method. [2 marks, c1]

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