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You are considering an investment in two projects, A and B . Both have an initial cost of $ 6 5 , 0 0 0
You are considering an investment in two projects, A and Both have an initial cost of $ and the projected
cash flows listed below.
Assuming the weighted average cost of capital WACC is calculate the payback period, discounted payback
period, NPV and IRR. If the projects are mutually exclusive, which should be selected?
Best Project?
Hint: Use an IF statement here
Suppose you are curious about how your WACC may impact your project decision. Create a NPV profile for
Project A and using the table below What is the exact crossover rate for these projects?
RED is incorrect
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