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Two projects have been presented to the board: Year Project G Project H 0 -$50,000 -$50,000 1 $10,000 $0 2 $10,000 $0 3 $10,000 $0
Two projects have been presented to the board:
Year | Project G | Project H |
0 | -$50,000 | -$50,000 |
1 | $10,000 | $0 |
2 | $10,000 | $0 |
3 | $10,000 | $0 |
4 | $10,000 | $0 |
5 | $10,000 | $75,000 |
Requirements:
- Compute the NPV with a discount rate of 6%.
- Calculate the IRR for both projects.
- Find the Profitability Index for each project.
- Identify which project is more favorable and provide reasons.
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Basic Engineering Circuit Analysis
Authors: J. David Irwin
9th Edition
73545511, 470457708, 470128690, 978-0073545516, 9780470457702, 978-0470128695
