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Perform a capital budgeting analysis for LMN Corporation using the following data: Project Initial Investment ($) Annual Cash Inflows ($) Salvage Value ($) Useful Life
Perform a capital budgeting analysis for LMN Corporation using the following data:
Project Initial Investment ($) Annual Cash Inflows ($) Salvage Value ($) Useful Life (Years) Project A $100,000 $30,000 $20,000 5 Project B $150,000 $40,000 $25,000 8 Discount rate: 10%
Requirements:
- Calculate the net present value for each project.
- Present the analysis in a detailed table format.
- Discuss the investment decisions based on capital budgeting analysis.
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