Andouille Spices, Incorporated, has the following mutually exclusive projects available. The company has historically used a...
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Andouille Spices, Incorporated, has the following mutually exclusive projects available. The company has historically used a three-year cutoff for projects. The required return is 13 percent. Year Project F Project G 0 -$ 137,000 -$ 207,000 1 59,000 39,000 2 51,000 54,000 3 61,000 91,000 56,000 121,000 51,000 136,000 4 5 a. Calculate the payback period for both projects. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. Calculate the NPV for both projects. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. Which project, if any, should the company accept? a. Project F es Project G b. Project F C. Project G years years Andouille Spices, Incorporated, has the following mutually exclusive projects available. The company has historically used a three-year cutoff for projects. The required return is 13 percent. Year Project F Project G 0 -$ 137,000 -$ 207,000 1 59,000 39,000 2 51,000 54,000 3 61,000 91,000 56,000 121,000 51,000 136,000 4 5 a. Calculate the payback period for both projects. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. Calculate the NPV for both projects. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. Which project, if any, should the company accept? a. Project F es Project G b. Project F C. Project G years years
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