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Q3: Suppose that you have the two projects as below: Year Project A Project B Initial investment 1,000,000 1,100,000 1 225,000 250,000 2 350,000 275,000

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Q3: Suppose that you have the two projects as below: Year Project A Project B Initial investment 1,000,000 1,100,000 1 225,000 250,000 2 350,000 275,000 3 300,000 350,000 4 300,000 400,000 5 250,000 250,000 Cost of Capital 10% Determine which project should be accepted using the following technique: Net present Value (NPV) Internal Rate of Return(IRR) - Payback period Cash inflow Discounted Payback period Profitability Index(PI)

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