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new page for this question. For dollar amounts, give your answer to the nearest cent. For interest rates, give our answer as a percentage rounded
new page for this question. For dollar amounts, give your answer to the nearest cent. For interest rates, give our answer as a percentage rounded to 2 decimal places. If any parts of the question use values from earlier parts, use the EXACT values from earlier parts. QUESTION START XYZ Co. is considering two mutually exclusive projects with the same cost of capital of 15%. The estimated net cash flows are as follows: Year Project X Project Y -$400 -$300 1 $210 $270 2 $240 $450 3 $300 -$270 a) Calculate the NPV for each project. Explain which project you would choose using the NPV criterion. (2 marks) b) If using Internal Rate of Return in capital budgeting decision in the context of Projects X and Y, explain whether IRR will produce the same decision outcome as NPV. (2 marks) c) Calculate the payback period for each project. (2 marks) d) Discuss two problems of using payback period in capital budgeting decisions in the context of Projects X and Y. (2 marks) e) Explain why the NPV method is the recommended approach among different capital budgeting measures. (2 marks)
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