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Problem # 2 Each of two mutually exclusive projects involves an investment of $ 75,000. The cash flows for the projects are as follows: Year

Problem # 2

Each of two mutually exclusive projects involves an investment of $ 75,000.

The cash flows for the projects are as follows:

Year Project A Project "B"

1 29,000 42,000

2 29,000 42,000

3 29,000 42,000

4 29,000

Note: Project "A" covers 4 years and project "B" covers 3 years.

A. Calculate each project's payback period. 1 point

B. Compute the IRR of each project. 1 Point

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