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BOAML Corp is trying to decide between two mutually exclusive projects. The cash flows for Project I and Project II are listed below: Year 0
BOAML Corp is trying to decide between two mutually exclusive projects. The cash flows for Project I and Project II are listed below: Year 0 Project! 1 2 3 -$40,000 $21,000 $21,000 $21,000 Project II -$15,000 $8,500 $8,500 $8,500 If the required rate of return is 10% and any reinvestment of cash flows would also be at this rate, calculate the following for each project: Project | Project 11 Payback Discounted Payback Net Present Value (NPV) Internal Rate of Return (IRR) Profitability Index (PI) Which project would YOU choose
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