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Q1) Jordan Olive Tree Inc. has two potential projects with the following details: Year Project A Project B Cashflow Cashflow 0 -$10000 -S50000 1 $3000

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Q1) Jordan Olive Tree Inc. has two potential projects with the following details: Year Project A Project B Cashflow Cashflow 0 -$10000 -S50000 1 $3000 $10000 2 $5000 25000 3 $7000 $15000 4 $2000 $7000 Assuming a discount rate of 9%, find the following (you must show the calculation steps): A) The net present value. Which of two projects adds more value to the shareholders' wealth? B) The internal rate of return. If the required rate of return is 9%, which one will be accepted? C) Which project has shorter payback period

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