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Question 2 A firm with a 14% cost of capital is evaluating two projects for this year's capital budget. The after-tax cash flows, including depreciation
Question 2 A firm with a 14% cost of capital is evaluating two projects for this year's capital budget. The after-tax cash flows, including depreciation are as follows Project A (RM) 6,000 i. Year 0 1 2 3 4 5 2,000 2,000 a. Payback period b. NPV c. IRR 2,000 2,000 2,000 Using all the information given, calculate the projects Project B (RM) 18,000 5,600 5,600 5,600 5,600 5,600 From the calculation above, which project will you choose? Explain your choice
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