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Andouille Spices, Incorporated, has the following mutually exclusive projects available. The company has historically used a three-year cutoff for projects. The required return is 14
Andouille Spices, Incorporated, has the following mutually exclusive projects available. The company has historically used a three-year cutoff for projects. The required return is 14 percent.
Calculate the payback period for both projects.
Calculate the NPV for both projects.
.
Which project, if any, should the company accept?
\begin{tabular}{crr} Year & Project F & Project G \\ 0 & $133,000 & $203,000 \\ 1 & 61,000 & 41,000 \\ 2 & 49,000 & 56,000 \\ 3 & 59,000 & 89,000 \\ 4 & 54,000 & 119,000 \\ 5 & 49,000 & 134,000 \end{tabular}
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