Question: EXCEL The Bernard plc is facing a choice between two mutually exclusive uses of the same site. The cash flows for the two projects are

EXCEL

EXCEL The Bernard plc is facing a choice between

The Bernard plc is facing a choice between two mutually exclusive uses of the same site. The cash flows for the two projects are shown below Project C Project D $000s $000s Year 0 Capital investment Net return 2,000 20,000 1 480 4,600 FI 2 576 5,380 FI 3 700 6,100 4 830 7,000 5 1,000 8,050 The weighted average cost of capital for Bernard plc is 10% Calculate the Payback period, NPV, BCR and the Internal Rate of return for these two projects

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