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Each investment requires a $100,000 initial cash payment The net income of each investment is as follows: Investment A: $110.000 each year for three years

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Each investment requires a $100,000 initial cash payment The net income of each investment is as follows: Investment A: $110.000 each year for three years Investment B: $210,000 in year 1, $60,000 in years 2 and 3, respectively. Factors to consider: Depreciation is estimated at $10,000 per year The required rate of return is 10% What is the Net Cash Flow from each investment? What is the Cash Payback Period from each investment? Which investment is preferred using the payback model? What is the Net Present Value of each investment? Which investment is preferred using NPV model? Are both investments acceptable if you can do both? Give two comments (advantage or disadvantages) of the Payback Period model and two comments (advantage or disadvantages) of the NPV model. Estimate the Internal Rate of Return (IRR) of Investment A. Explain your reasoning

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