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Consider the following two projects: a ) What is the Payback period for each project? Give your decision if the target or required PBP is

Consider the following two projects:
a) What is the Payback period for each project? Give your decision if the target or required
PBP is 1.50 years.
b) What is the NPV for each project (assume project Alpha has a required rate of return of
12% and project Beta a required rate of return of 15%)?
c) What is the IRR for each project?
d) These projects are mutually exclusive (meaning, if you accept one of them, you do not
accept the other even if both projects are acceptable). Which project would you recommend
your company accept? Why? Is there a conflict between the capital budgeting criteria? Why?
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