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Consider two projects: A ) with casha ows in years 0 - 4 of - 3 0 0 $ , 1 2 0 $ ,
Consider two projects: A with cashaows in years of $$$$ and respectively $ B with cashaows in years of $$$ and respectively $ a Assume an opportunity cost of capital of Which of these projects would you accept, if you use the NPV method? b Which one would you prefer, among the two, based on their Profitability Index PIc Which one would you choose if the cost of capital is What is the payback period of each project? d Is the project with the shortest payback period also the one with the highest NPV Explain. What are the internal rates of return on the two projects? e Does the IRR rule in this case give the same advice ie preferred project as NPV
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