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hi can anyone help Investment A Investment B S S Initial cost (paid at time 0) -50,000 -100,000 Net cash flow Yr I 6.000 40.000

hi can anyone help

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Investment A Investment B S S Initial cost (paid at time 0) -50,000 -100,000 Net cash flow Yr I 6.000 40.000 Net cash flow Yr 2 6,000 40.000 Net cash flow Yr 6,000 30.000 Net cash flow Yr 4 20,000 10 0100 Net cash flow Yr 5 30.000 10,000 All 3 investments will have no salvage value (residual value of zero) at the end of the 5th year and cash flows occur at the end of the year. Required: a. To help Grange make the investment decision calculate the NPV for both investment opportunities. (4 marks) b. Rank the projects according to their NPVs, and indicate which project you would accept if they are independent and if they are mutually exclusive. (2 marks) c. Discuss why the NPV method of project evaluation can be considered superior to the ARR method and describe two limitations of the IRR method. I (4 marks) Attach File Browse My Computer Browse Dropbox

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