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Question- Each of the following alternatives involves an initial outlay of BD 75,000. Their cash flows go as follows: [10 marks] Year Alternative C Alternative

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Question- Each of the following alternatives involves an initial outlay of BD 75,000. Their cash flows go as follows: [10 marks] Year Alternative C Alternative A 6,000 1 2 12.000 Alternative B 12,000 12,000 12,000 12,000 12,000 3 15,000 16,000 20,000 25,000 32,000 10,000 14,000 20,000 4 5 Required: Estimate and rank each alternative based on the following: 1- Evaluate the above projects using payback period method. 2. Evaluate the above projects using net present value (NPV) (use a 9% discount rate). 3- Evaluate the above projects using profitability index method. (2 marks) (6 marks) (2 marks)

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