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answer all questions please 1. Two projects being considered by a firm are mutually exclusive and have the following projected cash flows: Project A Project
answer all questions please
1. Two projects being considered by a firm are mutually exclusive and have the following projected cash flows: Project A Project B Year Cash Flow Cash Flow 0 -$600,000 -$600,000 1 245,500 $150,000 2 245,500 -$ 40,000 3 245,500 $450,000 The firm's cost of capital is 8 percent. Based only on the information given, a. What are the NPV for Project A and B? Which project do you choose based on the NPV? b. What are the payback periods for Project A and B? Which project do you choose based on the payback periods? c. What are the IRRs for Projects A and B? Which project do you choose based on the IRR? d. What are the MIRR for Projects B? When would be appropriate to use MIRR instead of IRR? Explain Step by Step Solution
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