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PROJECT A B INITIA NET CASH FLOWS AT YEAR END L COST YEAR YEAR YEA YEA YEAR 1 2 R3 R 4 5 -1000
PROJECT A B INITIA NET CASH FLOWS AT YEAR END L COST YEAR YEAR YEA YEA YEAR 1 2 R3 R 4 5 -1000 500 400 300 200 100 -1000 200 200 300 400 400 The company usually expects a 15% per annum return on its capital investments. Evaluate the two projects using the following methods, mentioning two advantages and two disadvantages of each method i. The Net Present Value method 4 marks ii. The Internal Rate of Return method 3 marks
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