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Supposed that you have a project, project 1, with cash flows of CF0, CF1, CF2, CF3, CF4, CF5. (Years 0-5). The discount rate for the

Supposed that you have a project, project 1, with cash flows of CF0, CF1, CF2, CF3, CF4, CF5. (Years 0-5). The discount rate for the project is estimated at 10.50%. A second project, project 2, has cash flows CF0, CF1, CF2, CF3, CF4, CF5. The projects are mutually exclusive projects of identical risk.

  1. Completely analyze both Project 1 and project 2 both independently and together using all the tools and techniques learned.
  2. Construct and label a graph comparing the two projects and completely explain your graph.

Project 1

Project 2

CF0

(4,500.00)

(4,500.00)

CF1

750.00

2,800.00

CF2

1,400.00

1,850.00

CF3

2,150.00

1,525.00

CF4

2,800.00

1,400.00

CF5

3,450.00

765.00

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