Question: A company is considering two mutually exclusive projects that have the following cash flows: Year Project A Cash Flow Project B Cash Flow 0 -$10,000

A company is considering two mutually exclusive projects that have the following cash flows:

Year Project A Cash Flow Project B Cash Flow

0 -$10,000 -$8,000

1 1000 7000

2 2000 1000

3 6000 1000

4 6000 1000

If the companys required rate of return is 10%, find the projects NPV, IRR, PI, and payback period. Which project they should invest in?

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