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Capital Budgeting Homework Assignment Show your calculations. A firm with a cost of capital of 10 percent is considering the following mutually exclusive projects: Year
Capital Budgeting Homework Assignment Show your calculations. A firm with a cost of capital of 10 percent is considering the following mutually exclusive projects: Year Project A ($450) Project B ($635) 300 300 75 250 60 (a) According to the payback criterion, which project should be accepted? According to the discounted payback criterion, which project should be accepted? According to the NPV criterion, which project should be accepted? (d) According to the IRR criterion, which project should be accepted? (C) According to the MIRR criterion, which project should be accepted? According to the PI criterion, which project should be accepted? Given all the information above, if there is no capital rationing, which project should be chosen and why? (h) Given all the information above, if there is severe capital rationing, which project should be chosen and why
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