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You are analyzing two mutually exclusive projects of similar size and have determined the following data. Both projects have 5-year lives. Based on the above

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You are analyzing two mutually exclusive projects of similar size and have determined the following data. Both projects have 5-year lives. Based on the above details, which of the two projects would you accept? Project A Project B NPV RM14,500 RM18,000 IRR 16% 14% Payback Period 3.6 years Required Return 12% 10% 3.3 years Select one: a. Project B and reject Project A nased on their NPVs. b. Project A because it has the shortest payback period. c. Both as they both have positive NPV. Question 15 Not yet The U.S. inflation rate is expected to be 4 percent over the next year, while Eurozone inflation rate is expected to be 3 percent. The current spot rate of the euro is USD1.13. Using purchasing power parity, the expected EUR spot rate at the end of one year is USD answered Marked out of 3.00 Select one: P Flag question a. 1.13 b. 1.14 C. 0.84 d. 0.92 Next page Previous page

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