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Answer the following questions. The exam is worth 50 points. Show your calculations to receive full credit. Answer only in the space provided. 1.
Answer the following questions. The exam is worth 50 points. Show your calculations to receive full credit. Answer only in the space provided. 1. Wilson Inc. considering the following two mutually exclusive projects. The required return on each project is 9.87 percent. Calculate the NPV and IRR. Which project should you accept and why? Calculate the profitability index for both projects. Which project should be selected? Why? Project La Fetra Project Mainero Year 0 -$10,000 -$20,000 Year 1 $ 3,000 $ 5,000 Year 2 $ 8,000 $ 7,000 Year 3 $ 4,000 $12,000 Year 4 $ 2,300 $10,300
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