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You are considering the following two mutually exclusive investments with the required rate of return 10%. a) Calculate NPV for both projects and state your
You are considering the following two mutually exclusive investments with the required rate of return 10%. a) Calculate NPV for both projects and state your decision to which project to invest? Explain why? b) Calculate IRR for both projects and state your decision to which project to invest? Explain why? Rate of return boundary for IRR project A is [9.5%,11%] and for project B is [4%,6%] c) Calculate Profitability Index for both projects and state your decision to which project to invest? Explain why? d) Calculate Payback Period for both projects and state your decision to which project to invest? Explain why? e) Calculate Accounting Rate of Return for both projects and state your decision to which project to invest? Explain why
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