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Questions 14 and 15 are based upon the details below. Consider Projects Gamma and Omega which are mutually exclusive. The cash flows of the two
Questions 14 and 15 are based upon the details below. Consider Projects Gamma and Omega which are mutually exclusive. The cash flows of the two projects are as follows: The cost of capital amounts to 11%. (xiv) What are the payback periods for both projects? [5 marks] (xv) The Internal Rate of Return for Omega is equal to: A. Between 8 and 9% B. Between 9 and 10% C. Between 10 and 11% D. Between 11 and 12%
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