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Martinez Company is considering two capital investment proposals. Relevant data on each project are as follows: Depreciation is computed by the straight-line method with no
Martinez Company is considering two capital investment proposals. Relevant data on each project are as follows: Depreciation is computed by the straight-line method with no salvage value. Martinez requires an 8% rate of return on all new investments. The present value of 1 for 8 periods at 8% is 0.54027 and the present value of an annuity of 1 for 8 periods is 5.74664. Click here to view PV tables. (a) Compute the cash payback period for each project. (Round answers to 1 decimal place, e.g. 15.2.) Compute the net present value for each project. Compute the annual rate of return for each project. (Round answers to 1 decimal places, e.g. 15.2.) Which project should Savanna select
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