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Inatech is contemplating two different projects and decides to perform a financial analysis to determine which is more financially lucrative. Project A and B have
Inatech is contemplating two different projects and decides to perform a financial analysis to determine which is more financially lucrative. Project A and B have cash flows as shown natech uses a required rate of return of 10% and an inflation rate of 4%. Compute (i) the discounted payback in years and (ii) the Net Present Value (NPV) for both projects, and then offer advice as to the best course of action Year 0 Project A $100,000 $20,000 $40,000 $50,000 $35,000 $500,000 Project B $400,000 $75,000 $100,000 $250,000 $150,000 $650,000 4 5
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