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Question 2 (25 Marks) As the finance manager, you are considering the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0

Question 2 (25 Marks) As the finance manager, you are considering the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$54,000 -$23,000 1 12,700 11,600 2 23,200 11,200 3 27,600 12,500 4 46,500 6,000 Based on the above information, compute: (i) The payback period for Project A and B (ii) The net present value (NPV) for Project A and B. (iii) The internal rate of return (IRR) for Project A and B. (6 marks) (6 marks) (6 marks)

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