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Consider the following two mutually exclusive projects: Cash Flow Cash Flow Year (A) (B) 344,000 49,000 51,000 71,000 71,000 446,000 1 24,600 22,600 20,100 2
Consider the following two mutually exclusive projects: Cash Flow Cash Flow Year (A) (B) 344,000 49,000 51,000 71,000 71,000 446,000 1 24,600 22,600 20,100 2 33 4 15,200 Whichever project you choose, if any, you require a return of 15 percent on your investment. c-1 What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimeal places, e.g., 32.16.) Project A Project B c-2 lf you apply the NPV criterion, which investment will you choose? Project A Project B d-1 What is the IRR for each project? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Project A Project B d-2lf you apply the IRR criterion, which investment will you choose? Project A Project B e-1 What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Project A Project B e-2lf you apply the profitability index criterion, which investment will you choose? Project A Project B f. Based on your answers in (a) through (e), which project will you finally choose
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