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Consider the following two mutually exclusive projects (F and G). Whichever project you choose, if any, you require a 10 percent return on your investment.
Consider the following two mutually exclusive projects (F and G). Whichever project you choose, if any, you require a 10 percent return on your investment. a. Calculate the payback period for each project. (4 marks) b. Calculate the net present value (NPV) of each project. (4 marks) c. Based on (a), (b) as well as the given IRR, which project will you finally choose? Explain. (2 marks)
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