Question: Blue Wolf Inc., is considering two mutually investments. Below are the projects expected net cash flows A) If each projects cost of capital is 14%,

 Blue Wolf Inc., is considering two mutually investments. Below are the

Blue Wolf Inc., is considering two mutually investments. Below are the projects expected net cash flows A) If each projects cost of capital is 14%, which project should be selected? If the cost of capital is 14%, what project is proper choice? B) What is each projects RR? We can find the internal rate of return using Excels IRR functions IRR Project A = IRR Project B = C) What is each projects MRR at a cost of capital of 14%? At r = 18%? D) What is the regular payback period for these two projects? E) At a cost of capital of 14% what is the discounted payback period for these two projects? F) What is the profitability index for each project if the cost of capital is 14%

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