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Unico, Inc. is considering purchasing one of two machineries for the upcoming year. The firm can only afford one of the machines. That is, these

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Unico, Inc. is considering purchasing one of two machineries for the upcoming year. The firm can only afford one of the machines. That is, these two projects are mutually exclusive. Answer the following questions if the required rate of return is 10 percent, with the following cash flows data: a. Calculate the NPV of each project. b. Calculate the Pl of each project c. Calculate the IRR of each project. d. If there is no capital-rationing constraint, which project should be selected? If there is a capital-rationing constraint, how should the decision be made? x Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Initial outlay Inflow year 1 PROJECTA $600 800 PROJECTB $6,000 7,000 Print Done

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