Caledonia is considering two additional mutually exclusive projects. The cash flows associated with these projects are as

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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 projects is 11 percent.
1. What is each project's payback period?
2. What is each project's net presentvalue?

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Foundations of Finance The Logic and Practice of Financial Management

ISBN: 978-0132994873

8th edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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Question Posted: May 06, 2013 05:17 AM

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Caledonia is considering two additional mutually exclusive projects. The cash flows associated with these projects are as

Question:

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

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1 Calculation of Each Project pay back period Project A uniform Cash flow Payback period Intial inve...View the full answer

Foundations of Finance The Logic and Practice of Financial Management

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