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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $ 416,000 $ 35,500 1 48,500 19,500 2 57,500 14,200
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $ 416,000 $ 35,500 1 48,500 19,500 2 57,500 14,200 3 74,500 14,100 4 531,000 10,900 The required return on these investments is 12 percent. What is the payback period for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. What is the IRR for each project? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. What is the profitability index for each project? Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161. Based on your answers in (a) through (d), which project will you finally choose
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