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Project A requires an initial investment of $200,000 and will generate annual cash flow of $40,000 forever. Project B requires $190,000 initial investment and will

Project A requires an initial investment of $200,000 and will generate annual cash flow of $40,000 forever. Project B requires $190,000 initial investment and will generate annual cash flow of $20,000 in the first year, however, its cash flow grows at 8% per year forever. These projects have a required return of 20%.

Please calculate the NPV, IRR, and payback period for each question.

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