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All techniques-decision among mutually exclusive investments??? Pound Industries is attempting to select the best of three mutually exclusive projects. The initial investment and? after-tax cash

All techniques-decision among mutually exclusive investments???

Pound Industries is attempting to select the best of three mutually exclusive projects. The initial investment and? after-tax cash inflows associated with these projects are shown in the following table:

CASH FLOWS PROJECT A PROJECT B PROJECT C
INITIAL INVESTMENT (CF) $90,000 $130,000 $120,000
CASH INFLOWS (CF), t=1 to 5 $30,000 $41,000

$41,500

Calculate the payback period for each project.

payback period = initial investment / after-tax cash flow

initial investment of project A is:

round to the nearest dollar

after-tax cash flow of project A is:

round to the nearest dollar

payback period of project A is:

round to two decimal places

initial investment of project B is:

round to the nearest dollar

after-tax cash flow of project B is:

round to the nearest dollar

payback period of project B is:

round to two decimal places

initial investment of project C is:

round to the nearest dollar

after-tax cash flow of project C is:

round to the nearest dollar

payback period of project C is:

round to two decimal places

Calculate the net present value? (NPV) of each? project, assuming that the firm has a cost of capital equal to 15%.

NPV of project A: $

round to the nearest cent

NPV of project B: $

round to the nearest cent

NPV of project C: $

round to the nearest cent

Calculate the internal rate of return? (IRR) for each project.

IRR of project A: %

round to two decimals

IRR of project B: %

round to two decimals

IRR of project C: %

round to two decimals

Indicate which project you would recommend.

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