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Question 2 (10 marks = 25 points) Zaire Electronics can make either of two investments at time 0. Assuming a required rate of return of
Question 2 (10 marks = 25 points) Zaire Electronics can make either of two investments at time 0. Assuming a required rate of return of 12 percent. PROJECT A B INVESTMENT $28,000 20,000 END OF YEAR 3 4 5 $8,000 $8,000 $8,000 6,000 6,000 7,000 $8,000 5,000 $8,000 5,000 6 $8,000 7,000 7 $8,000 7,000 determine for each project (with full answer) (a) the payback period (b) the net present value (c) the profitability index (d) the internal rate of return
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