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This is a long question and your help is desperately needed! Novell, Inc., has the following mutually exclusive projects. Year Project A Project B 0
This is a long question and your help is desperately needed!
Novell, Inc., has the following mutually exclusive projects. Year Project A Project B 0 1 2 3 $16,000 10,000 6,500 2,500 $19,000 11,000 7,500 6,500 a-1. Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) years Project A Project B years a-2. If the company's payback period is two years, which, if either, of these projects should be chosen? Project A Project B Both projects Neither project b-1. What is the NPV for each project if the appropriate discount rate is 16 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B b-2. Which, if either, of these projects should be chosen if the appropriate discount rate is 16 percent? Project A Project B Both projects Neither projectStep by Step Solution
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