Question: 36. Build Fast Ltd is considering two mutually exclusive projects at Adelaide. The cash flows associated with the projects are as follows: Year 0 1

 36. Build Fast Ltd is considering two mutually exclusive projects at

36. Build Fast Ltd is considering two mutually exclusive projects at Adelaide. The cash flows associated with the projects are as follows: Year 0 1 2 3 4 5 Project Sunrise Project Sunset -$15,0000 $-15,0000 $45,000 $0 $45,000 $0 $45,000 $0 $45,000 $80,000 $45,000 $20,0000 The required rate of return on these projects is 12%. (a) What is each project's payback period? (2 marks) (b) What is each project's net present value? (2 marks)

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