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Question 2. Assume that your firm wants to choose between two project options: . . Project A: $500,000 invested today will yield an expected income

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Question 2. Assume that your firm wants to choose between two project options: . . Project A: $500,000 invested today will yield an expected income stream of $150,000 per year for 5 years, starting in Year 1. Project B: an initial investment of $400,000 is expected to produce this revenue stream: Year 1 = 0, Year 2 = $50,000, Year 3 = $200,000, Year 4 = $300,000, and Year 5 = $200,000 Assume that a required rate of return for your company is 15% What is your selection based on Simple Payback Method? Why? What is your selection based on DCF? Why? If the Annual benefits (annual income) decreased by 15%, would your selection be the same if the simple payback method is adopted

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