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Show full calculation for the following: (Do not use Excel) Short Stop is expanding into larger markets and has evaluated the following two projects to

Show full calculation for the following: (Do not use Excel)

image text in transcribed Short Stop is expanding into larger markets and has evaluated the following two projects to undertake. Both projects are within the lending sector of Fintech, however Short Stop is unable to invest in both. The characteristics of the two projects are given below: Notes: 1) All annual cash flows are after tax and depreciation. 2) A flat rate of 12% is estimated as the risk in both projects. Your manager requires you to indicate, again with complete workings, which project is most beneficial to Short Stop. From a theoretical perspective, you manager indicates that she is struggling to understand net present value (NPV) as a decision-making tool. She requires you to provide a discussion on NPV with a specific directive to highlight some issues with projects with long lives

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