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Answer the question and provide steps, thank you Consider the following 2 separate projects. Project A B Costs at time 0 $500,000 $100,000 Income $14,000

Answer the question and provide steps, thank you

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Consider the following 2 separate projects. Project A B Costs at time 0 $500,000 $100,000 Income $14,000 paid at time = 0.5 years; $14,000 paid at the end of each year, starting at the end of year 1. Income paid every 6 months after the first one, with each income payment increasing by 5% compared to the previous amount. For both projects, income ceases after 20 years (i.e. the final income is at time ( = 20). (a) For each project, determine the IRR and NPV, assuming that a risk discount rate of 6% effective per year applies to NPV calculations. Give the IRR to the nearest 1%, and give the NPV to the nearest dollar. Show all working. (7 marks)

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