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Consider the following two projects and their cash flows. a ) If the opportunity cost of capital is 1 0 % , calculate the NPV

Consider the following two projects and their cash flows.

)

If the opportunity cost of capital is

10 %,

calculate the NPV

,

IRR, Profitability Index, and

payback of the two projects, respectively

(

show calculation steps to receive partial credit

) .

)

Suppose you can choose only one of these two projects. Which project would you choose and

why?

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