Question: 4. ABC Company is considering two mutually exclusive projects. Both require an initial investment of $50,000 each and have a life of five years. The

 4. ABC Company is considering two mutually exclusive projects. Both require

4. ABC Company is considering two mutually exclusive projects. Both require an initial investment of $50,000 each and have a life of five years. The cost of capital of the company is 10% and the estimated net cash inflows of the two projects are as follows: Year Project B 1 Project A 20,000 22,000 30,000 2. 3 28,000 27,000 22,000 25,000 20,000 4 4 5 25,000 30,000 Which project should be accepted as per a. Discounted Payback method b. Net Present Value methods C. Internal Rate of Return (4.3M)

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