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Dragon Products Company is considering two projects. The projects' cash flows are as follows: EXPECTED NET CASH FLOWS YEAR PROJECT A PROJECT B 0 ($9300)

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Dragon Products Company is considering two projects. The projects' cash flows are as follows: EXPECTED NET CASH FLOWS YEAR PROJECT A PROJECT B 0 ($9300) (17,600) 2700 3870 2 1930 2450 3 1500 4700 4 2800 4575 5 3200 2450 Discount Rate for both pojects = 7.5% REQUIRED 1. Find the Payback Period of both projects 2. What is the discounted PBP of both projects ? 3. Calculate the Net Present Value of the two projects and decide which one is better? 4. What is the profitability index of both products ? 5. What is the IRR of the project A only? 6. Why is sunk cost not considered when deciding about selecting a project? Which cost is considered and why

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