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Consider the following two mutually exclusive projects: What is the payback period for Project A? What is the discounted payback period for Project A?

Consider the following two mutually exclusive projects:

Year 0 1 AWN 4 Cash Flow (A) -$ 325,842 25,500 57,000 53,000 412,000 

What is the payback period for Project A?

What is the discounted payback period for Project A?

What is the NPV for Project A?

What is the NPV for Project A?

What is the profitability index for Project A?

Year 0 1 AWN 4 Cash Flow (A) -$ 325,842 25,500 57,000 53,000 412,000

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SOLUTION To calculate the payback period for Project A we need to find the time at which the cumulative cash inflows equal the initial investment The initial investment is 325842 and the cash inflows ... blur-text-image

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