Apple Inc is considering two mutually exclusive investment projects with the following cash flows Project A Initial Investment $1,000,000 Cash Inflows Year 1 $300,000 Year 2 $400,000 Year 3 $500,000 Project B Initial Investment $1,500,000 Cash Inflows Year 1 $400,000 Year 2 $500,000 Year 3 $600,000 Calculate the payback period and net present value (NPV) for each project Analyze the investment alternatives and recommend the project that maximizes shareholder value for Apple Inc

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Question: Apple Inc. is considering two mutually exclusive investment projects with the following cash flows: Project A: Initial Investment: $1,000,000 Cash Inflows: Year 1: $300,000 Year

Apple Inc. is considering two mutually exclusive investment projects with the following cash flows:

Project A:

Initial Investment: $1,000,000
Cash Inflows: Year 1: $300,000 Year 2: $400,000 Year 3: $500,000

Project B:

Initial Investment: $1,500,000
Cash Inflows: Year 1: $400,000 Year 2: $500,000 Year 3: $600,000

Calculate the payback period and net present value (NPV) for each project. Analyze the investment alternatives and recommend the project that maximizes shareholder value for Apple Inc.

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