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Morning limited is evaluating suitability of three projects whose costs are the same but cash flow patterns and number of years to utilize the machine
Morning limited is evaluating suitability of three projects whose costs are the same but cash flow patterns and number of years to utilize the machine are different. The cash flows for the three projects ; Cee Dee and Eee are given below. The company using 10% as discounting rate. Required. i) Compute the projects' payback period, discounted payback period, net present value and internal rate of return (the difference between high rate and lower rate should be 3% or less) ii) If the projects are mutually exclusive, (you only require to select one), which one would your select and why
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