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04. Joyce ls a new altant manager la Pace Ag. Her bouwked her to evaluate the capital budget opportunities of two potential investment Project A

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04. Joyce ls a new altant manager la Pace Ag. Her bouwked her to evaluate the capital budget opportunities of two potential investment Project A and Project B. Joyce has not much lowedge shoot capital budgeting deelsloa procedures, esked you for help. Flot the following table and then answer the following questions. (10 polets in total (Note: please find "Present Value Paeter" from the attached "Present Value of $1 table Project A Project After The Present Aller Der Anter Benefit (5) Value present Benefit Factor value of Pacto benefit Year 1 $3.000 $1.000 000 $2.000 Year 3 $4.000 $3,000 $5.000 Years $1,000 $2.000 52.000 Total Note: The discount/interest rate is 8% and the initial total cost is $12,000 (1) If the maximum payback period is allowed is 6 years, use the Payback method to find which project should Paul choose (2 points) (2) If the average yeariy investment for both Project A and Project B are $10,000, use the Average Rate of Return method to find the project. Paul should choose. (2 points)

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