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5) Derek's Donuts is considering two mutually exclusive investments. The projects' expected net cash flows are as follows: Year 0 1 2 3 4

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5) Derek's Donuts is considering two mutually exclusive investments. The projects' expected net cash flows are as follows: Year 0 1 2 3 4 5 6 7 Project K S(300) (387) (193) (100) 500 500 850 100 If the cost of capital is %12, which project is better choice according to the NPV? Year 6) Derek's Donuts is considering investments. The expected return is 10%. Calculate the modified internal rate of return (MIRR). Should they accept the project? The project's expected net cash flows are as follows: 0 1 2 3 4 5 Cash Flow (40.000) 60.000 Project L S(405) 134 134 134 135 134 134 0 (40.000) 50.000 (30.000) 20.000 I

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