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The Coca-Cola Company is considering two investment projects: Project Alpha and Project Beta. Project Alpha requires an initial investment of $20,000,000 and is expected to
- The Coca-Cola Company is considering two investment projects: Project Alpha and Project Beta.
- Project Alpha requires an initial investment of $20,000,000 and is expected to generate cash flows of $5,000,000 per year for the next 8 years.
- Project Beta requires an initial investment of $15,000,000 and is expected to generate cash flows of $4,000,000 per year for the next 6 years.
- Calculate the net present value (NPV) and profitability index (PI) for each project assuming a discount rate of 12%.
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Principles of Accounting
Authors: Belverd Needles, Marian Powers, Susan Crosson
10th edition
618736611, 978-1111809508, 111180950X, 978-0618736614
