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P.S. Please use the zoom feature on Google Chrome to see the question more closely. Alternatively, you can save the photo by right-clicking and it will be very clear and easy to see. For some reason Chegg uploads pictures like this and it is annoying. I am sorry. :(
All techniques-Decision among mutually exclusive investments Pound Industries is attempting to select the best of three mutually exclusive projects. The initial investment and after-tax cash inflows associated with these projects are shown in the following table. Cash flows Initial investment (CF) Cash inflows (CF), t= 1 to 5 Project $160,000 $50,000 Project B $190,000 $61,000 Project C $200,000 $61,500 a. Calculate the payback period for each project b. Calculate the net present value (NPV) of each project, assuming that the firm has a cost of capital equal to 13%. c. Calculate the internal rate of return (IRR) for each project. d. Indicate which project you would recommend. a. The payback period of project Ais years. (Round to two decimal places.) The payback period of project Bis years. (Round to two decimal places.) The payback period of project Cis years. (Round to two decimal places.) b. The NPV of project A is $ (Round to the nearest cent.) The NPV of project B is $ (Round to the nearest cent.) The NPV of project is $ (Round to the nearest cent.) c. The IRR of project Ais %. (Round to two decimal places.) The IRR of project B is %. (Round to two decimal places.) The IRR of project is %. (Round to two decimal places.) d. Which project would you recommend? (Select the best answer below.) O A. Project C O B. Project A OC. Project BStep by Step Solution
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