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ear Proj Y Proj Z 0 ($2,500,000) ($2,500,000) 1 2,100,000 950,000 2 875,000 863,000 3 675,000 4 900,250 Compare both projects using NPV if the
| ear | Proj Y | Proj Z |
| 0 | ($2,500,000) | ($2,500,000) |
| 1 | 2,100,000 | 950,000 |
| 2 | 875,000 | 863,000 |
| 3 | 675,000 | |
| 4 | 900,250 |
- Compare both projects using NPV if the cost of capital is 10%.
- Compare each project using the IRR approach.
- Now compare both projects using the equivalent annual annuity (EAA) method.
- Compare each project using the replication approach.
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Contemporary Financial Management
Authors: Don Cyr, Alfred Kahl, William Rentz, R. Moyer
1st Edition
017616992X, 978-0176169923
