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Consider the following cash flows of two mutually exclusive projects for AZ-Motorcars. Assume the discount rate for AZ-Motorcars is 12 percent. Year AZM Mini-SUV AZF

Consider the following cash flows of two mutually exclusive projects for AZ-Motorcars. Assume the discount rate for AZ-Motorcars is 12 percent.

Year AZM Mini-SUV AZF Full-SUV
0 $ 525,000 $ 875,000
1 335,000 365,000
2 210,000 450,000
3 165,000 305,000

a.

What is the payback period for each project?

Payback period
AZM Mini-SUV years
AZF Full-SUV years

b.

What is the NPV for each project?

NPV
AZM Mini-SUV $
AZF Full-SUV $

c.

What is the IRR for each project?

IRR AZM Mini-SUV % AZF Full-SUV %

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