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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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