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PLEASE SHOW WORKINGS Complete a financial analysis for top management, to facilitate comparison and decisionmaking on the two projects below, which both employ 25% discount
PLEASE SHOW WORKINGS
Complete a financial analysis for top management, to facilitate comparison and decisionmaking on the two projects below, which both employ 25% discount rate. The figures below are given in $000. Project A is a health project with an initial investment of $3300 and Project B is a tourism project with an initial investment of $2500. The inflows for four (4) years are given below. i) Compute, appropriately using above information and the tables given: A) the discounted payback period for both projects (show all workings) ( 5 marks) B) the NPV for both projects (show all workings) (2 marks) ii) Advise top management which project should be implemented. (1 mark) iii) Justify your decision and recommendation. (3marks)Step by Step Solution
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