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Consider the following two mutually exclusive projects: Year 0 Cash Flow (A) Cash Flow (B) $429,000 - 42,000 2 3 4 42,000 64,000 81,000 544,000
Consider the following two mutually exclusive projects: Year 0 Cash Flow (A) Cash Flow (B) $429,000 - 42,000 2 3 4 42,000 64,000 81,000 544,000 20,800 12,900 20,600 17,400 The required return on these investments is 11 percent a. What is the payback period for each project? (Do not round interme Payback period Project A Project B years years b. What is the NPV for each project? (Do not round intermediate calc Net present value Project A Project B c. What is the IRR for each project? (Do not round intermediate calcu Internal rate of return Project A Project B d. What is the profitability index for each project? (Do not round interm Profitability index Project A Project B
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