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MFI Inc. is a consultancy company that is located in Lebanon. One investor has consulted MFi and asked for an evaluation of two new proposed

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MFI Inc. is a consultancy company that is located in Lebanon. One investor has consulted MFi and asked for an evaluation of two new proposed projects in Lebanon. The first project is repair & maintenance center (Project 1). This project will cost $120,000 and will generate $33,000 cash flow per year for the next six years. The other project (Project 2) is a beauty center. The initial costs of this project is estimated to be $75,000 and it may generate $22,000 for the next six years. The company estimates that the WACC is 10% 8. Which of the following statements about ONLY the project "1" is Most accurate? A) The MIRR of the project is 13.3%; The company should accept the new project. B) The NPV of the project 1 is approximately +$23,723.6; The company should accept the new project 1. C) The discounted payback period is 4.7years, D) All of the above. E) None of the above. 9. If the projects (1 & 2) are independent, the company would mostly advise: A) Choose Project '1' since it has higher NPV than Project "2" B) Choose Project "2" since it has higher MIRR than Project "l'. C) Accept both projects, since both are profitable projects, D) None of the above Back Next Page 5 of 12 Never submit passwords through Google Forms This form was created inside of Lebanese International University Report Abuse Google Forms

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