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Bennick Builders is considering an investment of $667,000. The investment is expected to increase revenue by $230,000 annually for 5 years and have zero salvage

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Bennick Builders is considering an investment of $667,000. The investment is expected to increase revenue by $230,000 annually for 5 years and have zero salvage value. Assume the cost of capital is 14%. Required: For Option A 1) What is the Payback Period 2) What is the Internal Rate of Return 3) What is the Net Present Value Option B: Bennick builders is also considering an investment option that will require an initial cash outflow of $351,164 and has a net present value of $122,590. The present value of the cash inflows for this alternative option will be $473,754. Required: Comparison of Option A vs. Option B 4) What is the Profitability Index for Option A 5) What is the Profitability Index for Option B 6) If investment funds are limited should Bennick Builders choose Option A or B based on the profitability index

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