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, b) 20 ABC Company is considering two mutually exclusive projects. The firm, which has a 12% cost of capital, has estimated its cash flows

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b) 20 ABC Company is considering two mutually exclusive projects. The firm, which has a 12% cost of capital, has estimated its cash flows as shown in the following table. Initial Investment 1 Year 1 2 3 4 5 Project A Project B 130000 85000 Cash Inflow 25000 40000 35000 35000 45000 30000 50000 10000 55000 5000 1. iii. IV. Calculate the NPV of each project and assess its acceptability. Calculate the IRR for each project and assess its acceptability. Draw the NPV profiles for both projects on the same set of axes. Evaluate and discuss the rankings of the two projects based on your findings in parts 1, ii, and iii. Explain your findings in part iv in light of the pattern of cash inflows associated with each project V

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