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Two investments projects, A and B, are presented to you. Since the discount rate is unknown, a sensitivity analysis was conducted on the discount rate,

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Two investments projects, A and B, are presented to you. Since the discount rate is unknown, a sensitivity analysis was conducted on the discount rate, showing the resulting net-present values (NPV) on the y-axis. Investors ask you NOT to consider any project with a negative net present worth values. (a) Additional research on the most probable discount rate indicates that its value will be between somewhere between 8% and 10%. Which machine would you choose? (b) Based on the information provided in the graph, which machine should you choose and why? (c) If the IRR is more than 30%, which machine should be chosen based on the NPW criterion Two investments projects, A and B, are presented to you. Since the discount rate is unknown, a sensitivity analysis was conducted on the discount rate, showing the resulting net-present values (NPV) on the y-axis. Investors ask you NOT to consider any project with a negative net present worth values. (a) Additional research on the most probable discount rate indicates that its value will be between somewhere between 8% and 10%. Which machine would you choose? (b) Based on the information provided in the graph, which machine should you choose and why? (c) If the IRR is more than 30%, which machine should be chosen based on the NPW criterion

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