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please solve now , i dont have time Manama Inc. is considering two mutually exclusive projects A and B The initial investment and the estimates
please solve now , i dont have time
Manama Inc. is considering two mutually exclusive projects A and B The initial investment and the estimates of the annual revenues and costs associated with each project presented in the below table. The economic life of the project will be 5-Yent's period, and both projects cany same risk. Manama uses a discount rate of 1296. After considering the current economic situation Manama Inc. has set a maximum payback period of years and minimum rotum on investment (ROI) 18% Projects Projects B 798,000 357.000 Initial investment Cost of equipment (zero salvage value) Annual revenues and costs Sales reventies Variable expenses Depreciation expense Fixed out-of-pocket operating costs 420.000 126,000 70,000 $6,000 525.000 252.000 71.000 161.000 To determine the appropriate discount factor(s) using the tables provided Required 1. Calculate the payback period for each project 2 Calculate the net present value for each project 3. Calculate the simple rate of return for each product 504 AM Step by Step Solution
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