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Question2 Consider the following cash flows from different projects: (a) Calculate the payback period for each project. (b) Determine whether it is meaningful to calculate
Question2 Consider the following cash flows from different projects: (a) Calculate the payback period for each project. (b) Determine whether it is meaningful to calculate a payback period for project D. (c) Calculate the discounted payback period for each project. (d) Calculate the NPV of each project. (e) Calculate the IRR of each project (Note: assume that the discount rate is 10%)
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YUCM ECON401. E Q (5 marks) Consider the following cash flows from different projects: Project's Cash Flow ($) 5,000 2,000 1,500 -1,000 5,000 3,000 3,500 7,500 2,000 2,000 2,000 1,000 5,000 200 200 200 200 1,000 1,000 2,000 3,000 200 (a) Calculate the payback period for each project. (b) Determine whether it is meaningful to calculate a payback period for project D (c) Calculate the discounted payback period for each project. (d) Calculate the NPV of each project. e) Callate the IRR of each project Note: assume that the discount rate is 10%) ageStep by Step Solution
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