Question: 1. A company is considering two mutually exclusive projects. The projected cash flows are as follows: Cash Flows:A Cash Flows:B Year 0 -$245,000 -$250,000 1
1. A company is considering two mutually exclusive projects. The projected cash flows are as follows:
| Cash Flows:A | Cash Flows:B | ||
| Year | |||
| 0 | -$245,000 | -$250,000 | |
| 1 | $70,500 | $60,000 | |
| 2 | $85,000 | $60,000 | |
| 3 | $90,000 | $70,000 | |
| 4 | $125,000 | $110,000 | |
a) The company's required rate of return is 8%. Which project, if either, should the company choose?b) What is the discounted payback period for each? (25 marPlease show full breakdown of all calculations for a and b
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