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P9-17 Comparing Investment Criteria (L01, 2, 3, 5, 7) Consider the following two mutually exclusive projects: Year 0 1 2 3 4 Cash Flow (A)

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P9-17 Comparing Investment Criteria (L01, 2, 3, 5, 7) Consider the following two mutually exclusive projects: Year 0 1 2 3 4 Cash Flow (A) -$221,806 26,400 50,000 60,000 413,000 Cash Flow (B) -$15.783 5,711 8,248 13,390 8,045 Whichever project you choose, if any, you require a 6 percent return on your investment. a. What is the payback period for Project A? b. What is the payback period for Project B? c. What is the discounted payback period for Project A? d. What is the discounted payback period for Project B? e. What is the NPV for Project A? t. What is the NPV for Project B? 9. What is the IRR for Project A? h. What is the IRR for Project B? 1. What is the profitability Index for Project A? J. What is the profitability index for Project B

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