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urgent Cuestion 3 (20 Marks) S sulful Ltd trying to select the best investment from among four alternatives. Each alterative involves cn initial outlay of
urgent
Cuestion 3 (20 Marks) S sulful Ltd trying to select the best investment from among four alternatives. Each alterative involves cn initial outlay of $100,000 and a 10% cost of capital. Their cash flows follow: Year B D $10,000 $50,000 $25.000 $ 0 2 20.000 40,000 25,000 0 30.000 30.000 25,000 45,000 40,000 25,000 55.000 50.000 25,000 60.000 1 4 O 0 (3) What each project's Payback Period(8 marks) (1) Calculcte each project's Net Present Value (NPV) (8 marks) 15) If the projects are independent which project(s) should the fim accept under the NPV technique? 13 marks) 1 the Crojects are mutually exclusive which project should the firm accept under the NPV sichniques (1 marks) Step by Step Solution
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