Question: Note the following information on two mutually exclusive projects under consideration by Wang Food Markets, Inc. Wang requires a 14 percent rate of return on

Note the following information on two mutually exclusive projects under consideration by Wang Food Markets, Inc.

Wang requires a 14 percent rate of return on projects of this nature.
a. Compute the NPV of both projects.
b. Compute the internal rate of return on both projects.
c. Compute the profitability index of both projects.
d. Compute the payback period on both projects.
e. Which of the two projects, if either, should Wang accept?Why?

Annual Cash Flows Year -$30,000 $60,000 10000 20.000 20.000 10.000 20.000 0,000 20,000 0,000 0,000 20.000

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a NPV A 30000 100003433 4330 NPV B 60000 200003433 8660 b IRR A 30000 10000PVIFA r5 ... View full answer

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