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The directors of AE Electronics Ltd. Are considering investing in the following short-term projects. The Cash flow (after taxes) and costs of capital associated with

The directors of AE Electronics Ltd. Are considering investing in the following short-term projects. The Cash flow (after taxes) and costs of capital associated with each of these projects are given in the table below.

Project Name

Year 0

Year 1

Year 2

Year 3

Year 4

Cost of Capital

Alpha

-100

50

70

20

80

10%

Beta

-250

80

140

100

120

12%

Gamma

-150

120

40

70

30

10%

Delta

-250

80

80

80

80

14%

Epsilon

-50

40

40

20

20

11%

Which of the five projects would be considered acceptable in the AE electronics Ltd. If the NPV technique is being used to make capital budgeting decisions?

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