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MUST SHOW ALL WORK 2 investment options: The Company is considering 2 investment options. Below are the amounts of the investments and expected annual cash

MUST SHOW ALL WORK
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2 investment options: The Company is considering 2 investment options. Below are the amounts of the investments and expected annual cash flows for the next 5 years. The Company's hurdle rate for investments is 8%. Investment #1: cost of $200 Annual Cash inflows for years 1 - 5: Yr 1 $80 Y 2 $70 Yr 3 $60 Yr 4 $50 Yr 5 $40 Investment #2 cost of $400 Cash flows for years 1-5 Y 1 $25 Yr 2 550 Y 3 $100 Y 4 $200 Y 5 $400 * Required 1. Calculate the NPV of each Investment and include on your PDF upload. 2. Determine the Payback period in years for each investment and include on your PDF upload. (round to 2 decimal places) 3. Calculate the Profitability index for each option and include on your PDF upload. For preliminary Canvas grading, you may answer . Which investment (1 or 2) has the shortest payback period? . Which investment (1 or 2) has the highest profitability index? Investment Recommendation? Regarding the two investments you just reviewed ... a) Assuming the company has the cash to invest in both, should they? Why or Why Not? b) Assuming the company must choose, which one should they choose AND why? There's no wrong or right answer here just logical comments, suggestions and things to consider Please type response, and not hand write on PDF (too hard to read your writing, no offense, mine would be worse)

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