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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 B. Both have an initial cost of $65,000, and the projected
cash flows listed below.
Assuming the weighted average cost of capital (WACC) is 12%, 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 B using the table below What is the exact crossover rate for these projects?
CrossoverRate4.50%
RED is incorrect**
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