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Intro WH Smith Company is evaluating three projects: A, B, C, with cash flows as given in the table. Each project requires an initial investment
Intro WH Smith Company is evaluating three projects: A, B, C, with cash flows as given in the table. Each project requires an initial investment of $94,000 and has a required return of 6%. Year 1 2 50,000 0 20,000 40,000 50,000 40,000 20,000 50,000 40,000 10,000 40,000 40,000 3 4 Part 1 IE- Attempt 1/5 for 10 pts. What is the payback period for project A (in years)? 2+ decimals Submit Part 2 B Attempt 1/5 for 10 pts. What is the payback period for project B (in years)? Attempt 1/5 for 10 pts. Part 3 What is the payback period for project C (in years)? 2+ decimals Submit Part 4 IE- Attempt 1/5 for 10 pts. Which project is best based on the payback rule? Project B Project A Project Submit Attempt 1/5 for 10 pts. Part 5 What is the NPV of project A? 0+ decimals IB Attempt 1/5 for 10 pts. Part 6 What is the NPV of project B? 0+ decimals Submit IB Attempt 1/5 for 10 pts. Part 7 What is the NPV of project C? 0+ decimals Submit IB Attempt 1/5 for 10 pts. Part 8 Which project is best based on the NPV rule? Project C Project A Project B
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