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Consider the following projects with their respective cash flows: Year Project A Project B Project C Initial Outlay -$30,000 -$25,000 -$35,000 Year 1 $10,000 $8,000

Consider the following projects with their respective cash flows:

Year

Project A

Project B

Project C

Initial Outlay

-$30,000

-$25,000

-$35,000

Year 1

$10,000

$8,000

$12,000

Year 2

$10,000

$8,000

$12,000

Year 3

$10,000

$8,000

$12,000

Required:

  1. Determine the payback period for each project.
  2. Calculate the discounted payback period at a discount rate of 10%.
  3. Compute the NPV for each project.
  4. Find the IRR for each project.
  5. Evaluate the profitability index for each project.

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