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QUESTION 2: (20 MARKS) Company has $200,000 to invest and wishes to evaluate the following three projects Years A(S) B (S) C($) 0 (80.000) (100,000)

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QUESTION 2: (20 MARKS) Company has $200,000 to invest and wishes to evaluate the following three projects Years A(S) B (S) C($) 0 (80.000) (100,000) (60,000) 1 40.000 60.000 50.000 2 40.000 30,000 30.000 3 40.000 40.000 10.000 4 40.000 60,000 cost of capital 10% 10% 10% Required: Which project(s) would you recommend using: Payback Period (PP) in nominal and discounted values.(5 Marks) Net Present Value (NPV). (9 Marks) Profitability Index (PI). (3 Marks) The internal rate of return (IRR) (hint: use 35%)

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