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As a financial manager of Dublin Enterprises, you are required to analyse two proposed capital investments, Projects ABC and Project XYZ. Each has a cost
As a financial manager of Dublin Enterprises, you are required to analyse two proposed capital investments, Projects ABC and Project XYZ. Each has a cost of R400 000, and the cost of capital for each project is 15%. Depreciation is calculated on the straight-line method. The projects expected profit are as follows: PROJECT ABC PROJECT XYZ Year 1 R80 000 R30 000 2 R10 000 R30 000 3 R10 000 R30 000 4 (R30 000) R30 000
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1.1 Calculate the payback period for each project (In years, months and days). (10
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