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please show how to do on pen and paper 0 1 3 4 6 22. Suppose you are a Chief Financial Officer (CFO) and trying
please show how to do on pen and paper
0 1 3 4 6 22. Suppose you are a Chief Financial Officer (CFO) and trying to make a choice between two mutually exclusive investment projects (Project A and Project B). The required rate of return is 6.25%. Year 2 5 Project A: Cash Flow $150,000 45.000 48.000 190,000 180,000 -75,000 120.000 Project B: Cash Flow $120,000 27,000 -49,000 49,000 52,000 65,000 68,000 Based on the given information, which investment should you choose? Hint: Please calculate NPV and profitability index (Pl) of both projects and then recommend one project (4 Points) Project A: 2.75 B:1,32 Initial Cost -Total Pu Step by Step Solution
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