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Discount Rate Cashflows 0 1 2 3 4 5 6 7 8 9 10 10% Project A: Car $ (7,500.00) $ 1,675.00 $ 1,510.00 $

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Discount Rate Cashflows 0 1 2 3 4 5 6 7 8 9 10 10% Project A: Car $ (7,500.00) $ 1,675.00 $ 1,510.00 $ 1,295.00 $ 1,010.00 $ 845.00 $ 541.00 $ 414.00 $ 210.00 9% Project B: SUV $ (9,200.00) $ 2,185.00 $ 2,014.00 $ 1,784.00 $ 1,541.00 $ 1,312.00 $ 1,012.00 $ 800.00 $ 671.00 $ 422.00 $ 309.00 10% Project C: Truck $ (10,800.00) $ 2,714.00 $ 2,521.00 $ 1,891.00 $ 1,679.00 $ 1,438.00 $ 1,207.00 $ 951.00 $ 763.00 $ 531.00 1. Calculate the NPV, IRR, MIRR, Profitability Index, and Payback period for each project. (35pts) 2. Discuss which project you would choose to pursue and why. (15pts) 1. Assume that a firm will pay a dividend of $2 which grow at 14% in year 1, 10% in year 2, 8% in year 3, and will grow at 4% forever. Suppose the discount rate is 8%. The firm has $100 in cash. What is the company worth today based on the dividend? (35pts) 2. Explain your method of calculating the value including the process and the concept

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