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Show work if possible (or calculator inputs), thanks! The company must choose between two mutually exclusive projects. The cost of capital is 11%. The maximum
Show work if possible (or calculator inputs), thanks!
The company must choose between two mutually exclusive projects. The cost of capital is 11%. The maximum acceptable payback period is 4 years. The cash flows are as follows: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Project A $400,000 $100,000 $100,000 $100,000 $110.000 $120,000 $130.000 Project B -$250,000 $63,000 $63,000 $63.000 $63,000 $63.000 $63.000 A. Calculate the following and fill in the accept/reject decisions and ranking: Project A Project B Accept/Reject Ranking a. Payback Period: b. NPV C. IRRStep by Step Solution
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