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Mailings Review View References Aav Ao 211 AaBbcode AaBbcode AaBbcc No Spacing Heading 1 Clapter o nomework Problems 1-9 refer to two projects with the

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Mailings Review View References Aav Ao 211 AaBbcode AaBbcode AaBbcc No Spacing Heading 1 Clapter o nomework Problems 1-9 refer to two projects with the following cash flows: Year Project Project B -$300 1. IRR/NPV. If the opportunity cost of capital is 11%, which of these projects is worth pursuing? 2. Mutually Exclusive Investments. Suppose that you can choose only one of these projects. Which would you choose? The discount rate is still 11% 3. IRR/NPV. Which project would you choose if the opportunity cost of capital is 16%? 4. IRR. What are the internal rates of return on projects A and B? 5. Investment Criteria. In light of your answers to Problems 2, 3, and 4, is the project with the higher IRR the better project? 6. Profitability Index. If the opportunity cost of capital is 11%, what is the profitability index for each project? 7. Profitability Index. Is the project with the highest profitability index also the one with the highest NPV? 8. Payback. What is the payback period of each project? 9. Investment Criteria. Is the project with the also the one with the highest NPV? chortest Dayback tates) Focus E

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