Question: 6 1. Dewars Inc. is considering two mutually exclusive projects with widely differing lives. The company's cost of capital is 1 1%. The project cash

66 1. Dewars Inc. is considering two mutually exclusive projects with widely

1. Dewars Inc. is considering two mutually exclusive projects with widely differing lives. The company's cost of capital is 1 1%. The project cash flows are summarized as follows ProiectA roect B (S30,000) ($30,000) $17,000 7,500 $17,000 7,500 $17,000 7,500 C4 C5 CS C7 Cs Cg S.7500 $7.500 $7.500 a. Compare the projects byusing Payback.v b. Compare the projects byusing NPV.+ c. Compare the projects byusing IRR.+ d. Chose a project andjustify your choice

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