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on 1. Company ABC is considering the following two projects: t=0 t=1 t2 E3 L -1000 200 400 800 S -1000 660 400 240 The

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on 1. Company ABC is considering the following two projects: t=0 t=1 t2 E3 L -1000 200 400 800 S -1000 660 400 240 The cost of capital for both projects is 6%, and the company requires a payback of not more than 2.5 years when the payback period method is used and a discounted payback of not more than 3 years when the discounted payback method is used. (a) Calculate the payback period, discounted payback, NPV, IRR, MIRR, and PI. (b) Suppose that the two projects are independent projects. What should be the decision based payback period only, (ii) discounted payback only, (iii) NPV only, (iv) IRR only, (v) MIRR only, (vi) PI only, (vii) the consideration of all results in (a). (C) Suppose that the two projects are mutually exclusive. What should be the decision based payback period only, (ii) discounted pay back only, (ii) NPV only, (iv) IRR only, (v) MIRR only, (vi) PI only, (vii) the consideration of all results in (a). on

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