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Project A costs $95000 and is expected to generate $65000 in year one and $75000 in year two. Project B costs $120000 and Is expected
Project A costs $95000 and is expected to generate $65000 in year one and $75000 in year two. Project B costs $120000 and Is expected to generate $64000 in year one, $67000, in year two, $56000 in year threee and $45000 in year four. The required rate of return for these projects is 10%.
what is the internal rate of return for project A?
what is the profitability index of project B?
what is the net present value of project A and project B?
based on the criteria, we should accept project A, B or both?
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