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Answer the question using the provided information. Show complete and proper solution. Thank you. Answer the questions using the provided information. Show complete and proper
Answer the question using the provided information. Show complete and proper solution.
Thank you.
Answer the questions using the provided information. Show complete and proper solution. The Rowbox is currently evaluating three projects. The company scostofcapital is 15% and the risk free rate is at 10%. The Finance department currently forecasted the following cashflow of each project together with the risk index as shown below: A Initial Cashoutflows $ Year Projects B 15,000.00 $ 11,000.00 $ 19,000.00 Cash Inflows Cash Outflows Cash Inflows Cash Outflows Cash Inflows Cash Outflows 1$ 10,000.00 $ 2 10,000.00 4,000.00 $ 6,000.00 $ 2.000.00 4,000.00 $10,000.00 $ 4,000.00 7,000.00 3,000,00 8,000.00 2,000.00 3 10,000,00 4.000.00 9,000.00 4 10,000.00 4.000.00 3,000.00 1.00 4,000.00 1,000.00 C 12,000.00 17,000.00 0.60 4,000.00 5,000.00 Risk Index 1.80 1. How long is the payback period of each project? 2. Using the company scost of capital what is the Net Present Valueofeach project? 3. Using RADRwhat would be the Risk-Adjusted NPVofeachproject? 4. Using the Risk-Adjusted NPV, which project/s would yourecommend assuming that the three projects are independent projects and the companycurrently have $35,000 budgetStep by Step Solution
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