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and : a) end: You are comparing two projects with the following cash flows at year Year 1 Project 1 Project 2 Now 10,000 10,000

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and : a) end: You are comparing two projects with the following cash flows at year Year 1 Project 1 Project 2 Now 10,000 10,000 2,000 4,000 Year 2 2,000 3,500 Year 3 3,000 1,100 Year 4 5,000 4,500 Evaluate which of these is best using: Payback Net Present Value at 10% discount b) What is the value of 1,200 compounded at 3% per annum over 20 years? The repayment on a 60,000 mortgage over 20 years is 377 per month. What is the annual interest rate being charged

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