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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $344,371 $15,617 1 28,800 5,239 2 58,000 8,576 3 52,000

Consider the following two mutually exclusive projects:

Year Cash Flow (A) Cash Flow (B)
0 $344,371 $15,617
1 28,800 5,239
2 58,000 8,576
3 52,000 13,631
4 422,000 8,710

Whichever project you choose, if any, you require a 6 percent return on your investment.

a) What is the discounted payback period for Project A and what is the discounted payback period for Project B?

b) What is the NPV for Project A and what is the NPV .for Project B?

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