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QUESTION 4 [15] The directors of Money Investments Limited are considering two mutually exclusive projects. Roth projects are concerned with the purchase of land for

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QUESTION 4 [15] The directors of Money Investments Limited are considering two mutually exclusive projects. Roth projects are concerned with the purchase of land for building. Period Project A Project B Initial outlay 0 100 000 60 000 Cash inflows 1 60 000 36 000 2 30 000 3 16 000 28 000 40 000 Required: Calculate the net present value of each of the projects and state which of two projects should the directors accept and why. QUESTION 4 [15] The directors of Money Investments Limited are considering two mutually exclusive projects. Roth projects are concerned with the purchase of land for building. Period Project A Project B Initial outlay 0 100 000 60 000 Cash inflows 1 60 000 36 000 2 30 000 3 16 000 28 000 40 000 Required: Calculate the net present value of each of the projects and state which of two projects should the directors accept and why

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