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answer a and b Problem 3 Tropical Candy Inc are considering two mutually-exclusive projects, A and B. Their cash flows are shown below. Both Project
answer a and b
Problem 3 Tropical Candy Inc are considering two mutually-exclusive projects, A and B. Their cash flows are shown below. Both Project A and Project B have an estimated cost of capital of 10%. Cash flows will be realized at the end of each time period Year, t Project A Cash Flow at timet Project B Cash Flow at timet 0 -1800 -600 1 110 660 2 263.78 72.6 3 133.1 53.24 4 1024.87 146.41 5 3221.02 1610.51 Calculate the NPV for each project. Which, if either, project should be accepted? Why? b) Are there other capital budgeting criteria? If yes, list at least oneStep by Step Solution
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