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Lets assume a firm is considering investing in two projects that has the following cash flows: Interest rate for two projects is 10%. Could you
Lets assume a firm is considering investing in two projects that has the following cash flows: Interest rate for two projects is 10%.
Could you calculate the Payback period?
Date | Project A | Project B |
14-Dec-21 | -1000 | -1000 |
14-Dec-22 | 100 | 700 |
14-Dec-23 | 200 | 600 |
14-Dec-24 | 300 | 500 |
14-Dec-25 | 400 | 400 |
14-Dec-26 | 500 | 300 |
14-Dec-27 | 600 | 200 |
14-Dec-28 | 700 | 100 |
Could you draw a graph, that will show how NPV is dependant from interest rate?
Please all formulas using excel.
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