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All techniques with NPV profile - Mutually exclusive projects Projects A and B , of equal risk, are alternatives for expanding Rosa Company's capacity. The
All techniques with NPV profileMutually exclusive projects Projects A and B of equal risk, are alternatives for expanding Rosa Company's capacity. The firm's cost of capital is The cash flows for each project are shown in the following table:
a Calculate each project's payback period.
b Calculate the net present value NPV for each project.
c Calculate the internal rate of return IRR for each project.
d Indicate which project you would recommend.
Data table
Click on the icon here in order to copy the contents of the data table below into a spreadsheet.
tableProject AProject BtableInitial investment
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