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Problem 1) (15 points) Gardial Fisheries is considering two independent investments. Assume that each project's cost of capital is 10%. The projects' expected net cash
Problem 1) (15 points) Gardial Fisheries is considering two independent investments. Assume that each project's cost of capital is 10%. The projects' expected net cash flows are as follows: Expected Net Cash Flows Time Project A Project B 0 ($950) ($850) 1 $350 $280 2 $450 $350 3 $200 $500 $600 $400 5 $800 $750 a) Calculate each project's NPV and profitability index (PI). b) Calculate the projects' crossover rate and NPV at the cross over rate
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