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Sweet company is evaluating capital budgeting projects with the following information: Time Project A Project B 0 $-323,500 -323,500 1 78,900 90,000 2 78,800 90,000
Sweet company is evaluating capital budgeting projects with the following information:
Time | Project A | Project B |
0 | $-323,500 | -323,500 |
1 | 78,900 | 90,000 |
2 | 78,800 | 90,000 |
3 | 78,700 | 47,500 |
4 | 78,600 | 55,100 |
5 | 78,500 | 65,000 |
6 | 78,400 | 95,000 |
Sweet companys required rate of return is 11%, should the project be purchased?
Use the NPV, IRR, PBP, DPB, and profitability index to evaluate the projects.
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