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The director of capital budgeting for Giant Inc. has identified two mutually exclusive projects, L and S, with the following expected net cash flows: Expected

The director of capital budgeting for Giant Inc. has identified two mutually exclusive projects, L and S, with the following expected net cash flows:

Expected Net Cash Flows

Year Project L Project S
0 ($100) ($100)
1 10 70
2 60 50
3 80 20

Both projects have a cost of capital of 12 percent.

What is the payback period for Project S?

What is Project L's NPV?

What is Project L's IRR?

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