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UVW Solutions Project Comparison UVW Solutions has two projects with the following cash flows: Year 0 : Project G: -400,000, Project H: -400,000 Year 1
UVW Solutions Project Comparison
- UVW Solutions has two projects with the following cash flows:
- Year 0: Project G: -400,000, Project H: -400,000
- Year 1: Project G: 120,000, Project H: 80,000
- Year 2: Project G: 100,000, Project H: 100,000
- Year 3: Project G: 80,000, Project H: 120,000
- Year 4: Project G: 60,000, Project H: 150,000
- Cost of capital: 10%
- Requirements:
- Calculate the NPV for both projects.
- Calculate the IRR for both projects.
- Determine the payback period for each project.
- Evaluate which project is more financially viable considering NPV, IRR, and payback period.
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