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Consider the following cash flows of two mutually exclusive projects for AZ-Motorcars. Assume the discount rate for both projects is 10 percent. Year AZM Mini-SUV
| Consider the following cash flows of two mutually exclusive projects for AZ-Motorcars. Assume the discount rate for both projects is 10 percent. |
| Year | AZM Mini-SUV | AZF Full-SUV | ||||
| 0 | $ | 675,000 | $ | 930,000 | ||
| 1 | 403,000 | 415,000 | ||||
| 2 | 274,000 | 467,000 | ||||
| 3 | 238,000 | 319,000 | ||||
| a. | Based on the payback period, which project should be accepted? |
| b. | Based on the NPV, which project should be accepted? |
| c) Based on the IRR, project which project should be accepted? |
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An Introduction To Trading In The Financial Markets Market Basics
Authors: R. Tee Williams
1st Edition
0123748380, 9780123748386
