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Question 2 Not yet answered Marked out of 20.00 P Flag question You are financial analyst for the ABRAHAM Company. The director of capital budgeting

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Question 2 Not yet answered Marked out of 20.00 P Flag question You are financial analyst for the ABRAHAM Company. The director of capital budgeting has asked you to analyze two proposed capital investments Project A and project Beach project has a cost of $10,000 and the cost of capital for each is to. The project expected net cash flow are as follows Expected Net Cash Flows Mose Projects Project A 10.000 D -10.000 5.000 B.OOO 1.000 1.500 1.000 2.500 14.500 4.000 1. Calculate each projects NPV and Profitability Index 14416 marks] (Project A NPV 4 Marks) (Project BNPV 4 Marks) (Project A profitability Index 4 Marks) (Project B profitability Index 4 Marks) ii. Which project or projects should be accepted if they are independent? [4 marks THIS.E.A

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