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LMN Industries Financial Analysis LMN Industries is evaluating two investment projects. Year 0 : Project M: -250,000, Project N: -250,000 Year 1 : Project M:
LMN Industries Financial Analysis
- LMN Industries is evaluating two investment projects.
- Year 0: Project M: -250,000, Project N: -250,000
- Year 1: Project M: 80,000, Project N: 30,000
- Year 2: Project M: 70,000, Project N: 50,000
- Year 3: Project M: 60,000, Project N: 80,000
- Year 4: Project M: 50,000, Project N: 120,000
- Year 5: Project M: 40,000, Project N: 150,000
- Cost of capital: 8%
- Requirements:
- Calculate the NPV for both projects.
- Calculate the IRR for both projects.
- Determine the payback period for each project.
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