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You are considering two following mutually exclusive projects: i) Calculate each project's payback period. ii) Calculate each project's net present value (NPV) if the required
You are considering two following mutually exclusive projects: i) Calculate each project's payback period. ii) Calculate each project's net present value (NPV) if the required rate of return on the projects is 12% iii) Compute the internal rate of return (IRR) for Investment A only. iv) a) Justify which project should be selected based on the calculated NPV. b) Will your decision be the same if they are independent projects? Why? (18 marks) QUESTION5 1) A lender will conduct an analysis of credit based on 5C 's criteria in determining the customer's ability and willingness to pay debt. Briefly explain any 2 criteria of the 5C 's evaluation. ii) Explain the meaning of " 2/14 net 50 credit term. ( 6 marks)
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