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the text reads as : olympic construction ltd uses a maximum payback period of 6 years to evaluate investment proposals and currently must choose between

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olympic construction ltd uses a maximum payback period of 6 years to evaluate investment proposals and currently must choose between 2 which are mutually exclusive.Mixer tx 35 Requires $250000 and mixer P101 REQUIRES $350000

al end carrenity mt choe beten twu which are mtually csclive.e 233 requaires n loitital ontay of NS250 000 Mixer PL.O1 requirs a hoitial onitlay of 0 0 Expected sh inflows TX35 Mixer PL103 NS Year NS N0 000 80 000 75 000 40 000 35000 90 000 90 000 80 000 60 000 50 000 40 000 20 000 The cost of capital is 1 0% MARKS REQUIRED: Calculate each project's pay back period und indicate which project that meets Olympic Construction Ltd's criteria Evaluate the projects using Net Present Valuc and indicate which project is acceptable 2.1 10 Briefly discuss the significance for management,of the answers to 21 2.3 and 2.2 above 20 TOTAL MARKS

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