Consider the following mutually exclusive projects: Cash flows Project Co C C C C G A...

 

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Consider the following mutually exclusive projects: Cash flows Project Co C C C C G A -80,000 100,000 0 0 0 0 B -80,000 30,000 30,000 30,000 30,000 0 C -80,000 20,000 20,000 20,000 20,000 20,000 (a) What is the payback period for each project? (b) Which project is preferred according to the NPV criterion if the discount rate is 8%? (c) How would the the answer to (a) change if the discount rate was 5% ? (d) What is the Internal Rate of Return (IRR) for each project? Use the editor to format your answer Consider the following mutually exclusive projects: Cash flows Project Co C C C C G A -80,000 100,000 0 0 0 0 B -80,000 30,000 30,000 30,000 30,000 0 C -80,000 20,000 20,000 20,000 20,000 20,000 (a) What is the payback period for each project? (b) Which project is preferred according to the NPV criterion if the discount rate is 8%? (c) How would the the answer to (a) change if the discount rate was 5% ? (d) What is the Internal Rate of Return (IRR) for each project? Use the editor to format your answer

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a Project A Payback period 1 year Project B Payback period 1 3000080000 1375 yea... View the full answer