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Please use the table below to solve the following problem, which consists of 5 parts (A-E). Compute the IRR, NPV, PI, and payback period for
Please use the table below to solve the following problem, which consists of 5 parts (A-E). Compute the IRR, NPV, PI, and payback period for the following two projects. Assume the required return is 10%. Year Project A Project B o -$200 -$150 1 $200 $50 2 $800 $100 3 -$800 $150 A) What is the NPV for each project? Use the financial keys in your calculator to determine the answer. (10 points) B) What is the IRR for each project? Use the financial keys in your calculator to determine the answer. (.10 points) What is the Profitability Index (PI) for each project? You do not need to use the financial keys for this part. To answer this part, use the PV. of CF1-, information for Project A and B given below: (10 points) PV, of CF-3 $241.92 $240.80 D) What is the Payback Period for each project? You do not need to use the financial keys for this part. (10 points) E) Lastly, which project should we accept and why? (-10 points)
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