Question: 4. Consider there are two projects Project A and Project B, Both projects' economic life and initial investment outlays are same, and yearly expected net
4. Consider there are two projects Project A and Project B, Both projects' economic life and initial investment outlays are same, and yearly expected net cash flows from them are given as follows: ( 30pts ) If the cost of capital is 20%, answer the following questions: a. Calculate the payback period, discounted payback period, NPV and Profitability index for Project A. Would you accept or reject Project A? Explain why. (12 pts) b. Calculate the payback period, discounted payback period, NPV and Profitability index for Project B. Would you accept or reject Project B? Explain why. (12 pts)
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