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Conduct a capital budgeting analysis for LMN Corporation considering the following investment options: Project Initial Investment ($) Annual Cash Inflows ($) Useful Life (Years) Project
- Conduct a capital budgeting analysis for LMN Corporation considering the following investment options:
Project | Initial Investment ($) | Annual Cash Inflows ($) | Useful Life (Years) |
---|---|---|---|
Project A | $100,000 | $30,000 | 5 |
Project B | $150,000 | $40,000 | 8 |
Project C | $120,000 | $35,000 | 6 |
Requirements:
- Calculate the net present value (NPV) and internal rate of return (IRR) for each project.
- Present the analysis in a detailed table format.
- Discuss the financial viability of each investment option.
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