Question: Consider the following two projects, both requiring an initial investment of $60,000: Year Project G Project H 1 $20,000 $25,000 2 $25,000 $20,000 3 $30,000
Consider the following two projects, both requiring an initial investment of $60,000:
Year | Project G | Project H |
1 | $20,000 | $25,000 |
2 | $25,000 | $20,000 |
3 | $30,000 | $15,000 |
a. Calculate the NPV for both projects if the opportunity cost is 9%. b. Determine the IRR for both projects. c. Calculate the payback period. d. Evaluate the profitability index for each project. e. Which project would you recommend if they are mutually exclusive?
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