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plz answer all part separately a,b,& c (separately answer) 1. Projects A and B have the following expected net cash flows: Year 0 1 2
plz answer all part separately a,b,& c (separately answer)
1. Projects A and B have the following expected net cash flows: Year 0 1 2 3 4 5 Project A Cash Flow -$500,000 250,000 250,000 250,000 200,000 150,000 Project B Cash Flow -$500,000 350,000 350,000 300,000 200,000 Both the projects are of the same company, Bit Corporation. The most recently paid dividend was $2 and it is growing at 5% for the infinite period of time. Moreover, the stock is selling for $45. Assume you are a finance manager of the company. a. Calculate the pay back period for both projects. (4) b. Calculate the NPV of both projects. (6) c. Which project should the company choose and why? (2)Step by Step Solution
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