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Use the following data to answer questions 1-5: Wilson & Sons Inc. requires 15% return on its investments. The company is considering the following two
Use the following data to answer questions 1-5: Wilson \& Sons Inc. requires 15% return on its investments. The company is considering the following two mutually exclusive investment projects: QUESTION 1 Calculate the Payback for each project. If the company imposes a payback cutoff of three years for its investment projects, should it accept either of the two projects? QUESTION 2 Calculate the Discounted Payback for each project. Which project is preferred, based on discounted payback period? Why? QUESTION 3 Calculate the Net Present Value (NPV) for each project? Which project is preferred, based on NPV? QUESTION 4 Calculate the Internal Rate of Return (IRR) for each project. Which project is preferred, based on IRR? QUESTION 5 Calculate the Modified Internal Rate of Return (MIRR) Which project is preferred, based on MIRR
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