Question
Consider the following mutually exclusive projects: Cash flows Project Co C C C C G A -80,000 100,000 0 0 0 0 B -80,000
Consider the following mutually exclusive projects: Cash flows Project Co C C C C G A -80,000 100,000 0 0 0 0 B -80,000 30,000 30,000 30,000 30,000 0 C -80,000 20,000 20,000 20,000 20,000 20,000 (a) What is the payback period for each project? (b) Which project is preferred according to the NPV criterion if the discount rate is 8%? (c) How would the the answer to (a) change if the discount rate was 5% ? (d) What is the Internal Rate of Return (IRR) for each project? Use the editor to format your answer
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
10th edition
978-0077511388, 78034779, 9780077511340, 77511387, 9780078034770, 77511344, 978-0077861759
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