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please write all answers clearly and properly, thank you All techniques-Decision among mutually exclusive investments Pound Industries is attempting to select the best of three
please write all answers clearly and properly, thank you
All techniques-Decision among mutually exclusive investments Pound Industries is attempting to select the best of three mutually exclusive projects. The initial investment and after-tax cash inflows associated with these projects are shown in the following table. Cash flows Project A Project B Project C Initial investment (CF) $30,000 $70,000 $70,000 Cash inflows (CF), t= 1 to 5 $10,000 $22,000 $23,500 a. Calculate the payback period for each project. b. Calculate the net present value (NPV) of each project, assuming that the firm has a cost of capital equal to 12% C. Calculate the internal rate of return (IRR) for each project. d. Indicate which project you would recommend. a. The payback period of project A is years. (Round to two decimal places.) years. (Round to two decimal places.) The payback period of project B is The payback period of project is years. (Round to two decimal places.) b. The NPV of project A is $ (Round to the nearest cent.) The NPV of project B is $ , (Round to the nearest cent.) The NPV of project C is $ (Round to the nearest cent.) c. The IRR of project A is %. (Round to two decimal places.) The IRR of project B is %. (Round to two decimal places.) The IRR of project is %. (Round to two decimal places.) d. Which project would you recommend? (Select the best answer below.) Project B Project C Project AStep by Step Solution
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