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You are considering investment opportunity in Project A, B, and C Project T=0 T=1 T=2 T=3 T=4 T=5 5=6 T=7 T=8 A -120 20 20

You are considering investment opportunity in Project A, B, and C

Project

T=0

T=1

T=2

T=3

T=4

T=5

5=6

T=7

T=8

A

-120

20

20

20

20

20

20

20

20

B

-150

28

28

28

28

28

28

28

C

-200

50

50

100

Project

NPV@8%

IRR

A

B

C

According to NPV rule, which project do you recommend undertaking if A, B, and C are non-mutually exclusive? Explain why? Assuming that the discount rate is 8%

According to NPV rule, which project do you recommend undertaking if A, B, and C are mutually exclusive? Explain why? Assuming that the discount rate is 8%

According to IRR rule, which project do you recommend undertaking if A, B, and C are non-mutually exclusive? Explain why? Assuming that the discount rate is 8%

According to IRR rule, which project do you recommend undertaking if A, B, and C are mutually exclusive? Explain why? Assuming that the discount rate is 8%

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