Question: Amphibian Inc is considering three mutually exclusive projects, Projects A , B , and C . The initial investment for Project A is $ 1
Amphibian Inc is considering three mutually exclusive projects, Projects A B and C
The initial investment for Project A is $ and is expected to generate aftertax cash flows of $ per year for five years. Project B requires an initial investment of $ and is expected to generate aftertax cash flows of $ per years for three years. Project C requires an initial investment of $ and is expected to generate $ per year for four years. All projects can be replicated. The required rate of return for A B and C are and respectively.
i Estimate the NPV of each project
ii Estimate the jayback period for each project.
iii. which project should the company undertake and why?
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