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Managerial accounting question . Can someone help me figure this out? Cash Flows Project A Project B (10,000) (10,000) 5000 7000 12,000 50,000 These projects
Managerial accounting question.
Can someone help me figure this out?
Cash Flows Project A Project B (10,000) (10,000) 5000 7000 12,000 50,000 These projects are mutually exclusive. 1, 2. What is the payback period for both? If the cutoff is 2 years which one do you accept? a. b. Assume the cash flows 1,2,3 are the same as net income. Assume the asset purchased at time zero depreciates to zero. What is the Average Accounting Return for both? Which one do you choose? Show the algebra on how to calculate IRR for project A. Use the real numbers where appropriate. 9 d. If r= 10% compute NPV for both Project A and BStep by Step Solution
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