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Dior has the opportunity to choose between the following two mutually exclusive projects: Expected Net Cash Flows Year Project Expected Net Cash Flows Year; Project
Dior has the opportunity to choose between the following two mutually exclusive projects: Expected Net Cash Flows Year Project
Expected Net Cash Flows Year; Project A; Project B 0; -$100,000; -$100,000 1; 60,000; 33,500 2 ; 60,000; 33,500 3 ; 00; 33,500 4 ; 00; 33,500
Both projects have a 10% cost of capital. a. Calculate the Payback Period for each project. b. Which project should be selected according to the payback period method? c. Calculate the NPV of each project. d. Which project should be selected according to the NPV method?
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