Question: Here are the cash-flow forecasts for two projects: 100 100 Year Cash flows (dollars) Project A Project B 0 1 30 49 2 50 49

 Here are the cash-flow forecasts for two projects: 100 100 Year

Here are the cash-flow forecasts for two projects: 100 100 Year Cash flows (dollars) Project A Project B 0 1 30 49 2 50 49 3 70 49 Using the NPV, Payback, Discounted Payback, IRR and PI, answer the following questions (cutoff period of 3 years). a. Which project would you choose if the opportunity cost of capital is 2%? b. Which project would you choose if the opportunity cost of capital is 12%? c. If they are mutually exclusive projects, which project would you choose and WHY? d. If the Cutoff period is 2 years, which project would you choose

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