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Hideoshi Software has the following mutually exclusive projects. Year Project A () Project B () 0 -5500 -4000 1 4000 2500 2 5500 1200 3
Hideoshi Software has the following mutually exclusive projects.
Year Project A () Project B ()
0 -5500 -4000
1 4000 2500
2 5500 1200
3 500 3000
- Suppose Hideoshi's payback period cut-off is two years. Which of these two projects should be chosen?
- Suppose Hideoshi uses the NPV rule to rank these two projects. Which project should be chosen if the appropriate discount rate is 10%?
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Introductory Econometrics For Finance
Authors: Chris Brooks
2nd Edition
052169468X, 9780521694681
