Question: Caledonia is considering two additional mutually exclusive projects. The cash flows associated with these projects are as follows: The required rate of return on these

Caledonia is considering two additional mutually exclusive projects.

The cash flows associated with these projects are as follows:


Caledonia is considering two additional mutually exclusive proje


The required rate of return on these projects is 11 percent.
1. What is each project's payback period?
2. What is each project's net presentvalue?

YEAR PROJECT B PROJECTA -$100,000 32,000 32,000 32,000 32,000 32,000 -S100,000 S200,000

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