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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:
- Determine the payback period for each project.
- Calculate the discounted payback period at a discount rate of 10%.
- Compute the NPV for each project.
- Find the IRR for each project.
- Evaluate the profitability index for each project.
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