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Cash Flows and Investments (in ) Year Project A Project B Project C Initial Investment 5,000,000 7,500,000 10,000,000 Year 1 1,000,000 1,500,000 2,000,000 Year 2

Cash Flows and Investments (in ₹)

Year

Project A

Project B

Project C

Initial Investment

5,000,000

7,500,000

10,000,000

Year 1

1,000,000

1,500,000

2,000,000

Year 2

2,000,000

2,500,000

3,000,000

Year 3

3,000,000

3,500,000

4,000,000

Year 4

4,000,000

4,500,000

5,000,000

Year 5

5,000,000

5,500,000

6,000,000

Required:
  1. Calculate the NPV for each project using a 12% discount rate.
  2. Determine the IRR for each project.
  3. Compute the Payback Period for each project.
  4. Select the best project based on the highest NPV.
  5. Conduct a sensitivity analysis for Project A with a discount rate of 10% and 14%.

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