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The investment opportunities are Project A and Project B, which are mutually exclusive and have the following estimated cash flows: Year Project A Project B
The investment opportunities are Project A and Project B, which are mutually exclusive and have the following estimated cash flows:
Year Project A Project B
0 -RM125,000 -RM125,000
1 RM52,500 RM32,500
2 RM52,500 RM32,500
3 RM25,000 RM65,000
4 RM25,000 RM65,000
5 RM20,000 RM20,000
Compute the net present value for each project given a 14% cost of capital for the firm.
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