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Q10: Chapter 25 Following is information on two alternative investments being considered by Deutz Company. The company requires a 10% return from its investments. All

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Q10: Chapter 25 Following is information on two alternative investments being considered by Deutz Company. The company requires a 10% return from its investments. All amounts are in thousands of Euros ( '000). Project A Project B Initial investment (160) (105) Expected net cash flows in year: 1 40 32 2 56 50 3 80 66 90 72 65 Required: a) For each alternative project compute the net present value (NPV) b) For each alternative project compute the profitability index (PI Index). c) Comment on which of the two investment option is preferred, and explain. Use the Present Value Table provided below. Present Value Table TARE santa 1 WISSENS COM WE WERE SER CAN COWO. 160 ANTOS CONSORS GROSS WEBCAM ME 11. mes GENES DE ARE 6. HOS OROS 16 GB TENT

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