Question: Consider the following two mutually exclusive projects: Whichever project you choose, if any, you require a return of 13% on your investment. a. If you

Consider the following two mutually exclusive projects: Whichever project you choose,

Consider the following two mutually exclusive projects: Whichever project you choose, if any, you require a return of 13% on your investment. a. If you apply the payback criterion, which investment will you choose? Why? (3 marks) b. If you apply the NPV criterion, which investment will you choose? Why? (5 marks) c. Based on your answers in (a) and (b), which project will you finally choose? Why? (2 marks)

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