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Question 5 A company must choose between Project C and Project D, both of which would be financed by a loan, repayable only at the

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Question 5 A company must choose between Project C and Project D, both of which would be financed by a loan, repayable only at the end of the project. The company must pay interest at a rate of 6.25% pa effective on money borrowed, but can only earn interest at a rate of 4% po effective on money invested in its deposit account. The cashflows for Project C, which has a term of 5 years, are: Outgo Income 100.000 (start of year 1) 140,000 (end of year 5) The cashflows for Project D, which has a term of 3 years, are: Outgo Income 80,000 (start of year 1) 10,000 (end of year 1) 20,000 (start of year 2) 30,000 (end of year 2) 5,000 (start of year 3) 87,000 (end of year 3) Calculate the accumulated profit at the end of 5 years for each project

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