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Problem 1 Your company has the following projects available: Project Cash Flows Time Period Project A Project B Project Project D -$65,000-$75,000-$15.000 -S10,000 $32,000 $5,000

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Problem 1 Your company has the following projects available: Project Cash Flows Time Period Project A Project B Project Project D -$65,000-$75,000-$15.000 -S10,000 $32,000 $5,000 $40,000 $6,000 $32,000 $10,000 $20,000 $4,000 S15,000 $15,000-$45,000 $7,000 $40,000 $3,000 $60,000 Discount Rate 10.00% 10.00% 14.00% 5.00% Project D Project A Project B Project Payback Period NPV IRR Calculate the numbers that belong in the blank cells for Projects A to D. IRR of Project C is not required. Answer the following questions based on the numbers: .. If your company can only take one project based on the NPV, which project will be chosen? What if your company can take multiple projects at the same time? b. If your company wants the initial investment to be paid back as soon as possible, which project should your company choose? c. If your company requires at least 12% annual return from the project, which project(s) should be accepted

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