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g Year 1 3 Project Snow Project Dessert -R210 000 -R21 000 R15 500 R11 000 R30 000 R 9500 4 R40 000 R18 000
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Year 1 3 Project Snow Project Dessert -R210 000 -R21 000 R15 500 R11 000 R30 000 R 9500 4 R40 000 R18 000 5 R370 000 R 9000 The required rate of return on these projects is 15%. The firm's cut-off period has been determined as four years. B)Calculate the discounted payback period of Project Snow. C)26 Based only on your answer to question 25, make your selection: () A. Yes, Project Snow is acceptable. B. No, Project Snow should be rejected. D) Calculate the net present value (NPV) of Project Snow. (1) E) Calculate the internal rate of internal rate of return (IRR) of Project Dessert. (1) F) True or False: It is possible that the firm can select both projects, Project Snow AND Project Dessert. (%) G)30 By considering the net present values (NPVS) and internal rates of return (IRRS) of both projects, make your final selection: () A. Project Snow B. Project Dessert C. Project Snow and Project Dessert Step by Step Solution
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