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Congratulations! You have moved up to the XYZ Corps Financial Team. For your first assignment as part of team you are asked to compare 3

Congratulations! You have moved up to the XYZ Corps Financial Team. For your first assignment as part of team you are asked to compare 3 potential capital investments. Instructions: Each project has a 10-year life span with no residual value. The initial investment on each is $15,000. The Weighted Average Cost of Capital (WACC) is 5% for each project as well. The difference between the projects is cash flows. Project 1 has a steady stream of cash flows, $2,000 annually, throughout its life. Project 2s cash flows start with $2,450 per year but decrease by $100 per year throughout its life. Project 3 starts with $1,550 in year one but increases by $100 per year throughout its life. Using the NPV method, determine which investment is the better capital investment and please explain why. Additionally, how do the different cash flow streams impact the NPV? Why? Requirements: Submit a Word document or Excel spreadsheet.

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