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u. As a financial manager for company XYZ, you are given the following information: Cash Flows Year 1 Year 2 Year 4 CA Project B
u. As a financial manager for company XYZ, you are given the following information: Cash Flows Year 1 Year 2 Year 4 CA Project B Year 0 CO -5,000 1,000 -5,000 +1,000 0 *1,000 1,000 +1,000 +1,000 Year 3 C3 3,000 -2,000 +3,000 0 +3,000 5,000 What is the payback period on each of the following projects? Given that you wish to use the payback rule with a cutoff period of two years, which rojects would you accept? If the opportunity cost of capital is 10%, what is the NPV for Project B? Q1. As a financial manager for company XYZ, you are given the following information: Cash Flows Year o Year 1 Year 2 Year 3 Year 4 Project Co C1 C2 C3 C4 A -5,000 +1,000 +1,000 +3,000 0 B - 1,000 0 +1,000 +2,000 +3,000 -5,000 +1,000 +1,000 +3,000 +5,000 a. What is the payback period on each of the following projects? b. Given that you wish to use the payback rule with a cutoff period of two years, which projects would you accept? c. If the opportunity cost of capital is 10%, what is the NPV for Project B
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