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Investment Projections (in $) Year Project A Project B Project C Initial Investment 30,000 40,000 50,000 Year 1 10,000 15,000 20,000 Year 2 15,000 20,000
Investment Projections (in $)
Required:
Year | Project A | Project B | Project C |
Initial Investment | 30,000 | 40,000 | 50,000 |
Year 1 | 10,000 | 15,000 | 20,000 |
Year 2 | 15,000 | 20,000 | 25,000 |
Year 3 | 20,000 | 25,000 | 30,000 |
Year 4 | 25,000 | 30,000 | 35,000 |
Year 5 | 30,000 | 35,000 | 40,000 |
- Calculate the NPV at a 10% discount rate.
- Determine the IRR for each project.
- Compute the Payback Period.
- Decide the best project based on the highest IRR.
- Conduct a sensitivity analysis for Project B with a discount rate of 9% and 11%.
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