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I need help with question D please! 1. Consider the following two mutually exclusive projects. Assume the cost of capital is 10% a. Compute the
I need help with question D please!
1. Consider the following two mutually exclusive projects. Assume the cost of capital is 10% a. Compute the NPV for the two projects and what is the decision rule? $41,92$90.80 The NPV of B is higher than A, so you should pick B but both projects should be accepted b. Compute the profitability index for the two projects and what is the decision rule? 1.211.61 B has the highost profitability index, but A is also greater than 1 so they can both be accepted. c. Compute the payback for the two projects. Suppose that the required payback is 1.9 years. What is the decision rule? 1.002.00 A should be accepted since the payback period is less than the average, and B is over the average of 1.9 so it should not be accepted d. Graph the NPV profile for the projects. For the discount rate used in the graph, use 0% to 120% in increments of 10%. You can manually compute the NPVs and draw the graph or paste in the Excel graph Step by Step Solution
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