(Net present value, profitability index, and internal rate of return calculations) You are considering two independent...

 

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(Net present value, profitability index, and internal rate of return calculations) You are considering two independent projects, Project A and Project B. The initial cash outlay associated with Project A is $53,000 and the initial cash outlay associated with Project B is $66,000. The discount rate on both projects is 10.3 percent. The expected annual cash flows from each project are as follows: Year 0723 Project A $(53,000) Project B $(66,000) 1 12,000 13,000 12,000 13,000 12,000 13,000 4 5 12,000 13,000 12,000 13,000 6 12,000 13,000 (Click on the icon in order to copy its contents into a spreadsheet.) Calculate the NPV, PI, and IRR for each project and indicate if the project should be accepted or not. (Net present value, profitability index, and internal rate of return calculations) You are considering two independent projects, Project A and Project B. The initial cash outlay associated with Project A is $53,000 and the initial cash outlay associated with Project B is $66,000. The discount rate on both projects is 10.3 percent. The expected annual cash flows from each project are as follows: Year 0723 Project A $(53,000) Project B $(66,000) 1 12,000 13,000 12,000 13,000 12,000 13,000 4 5 12,000 13,000 12,000 13,000 6 12,000 13,000 (Click on the icon in order to copy its contents into a spreadsheet.) Calculate the NPV, PI, and IRR for each project and indicate if the project should be accepted or not.

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To calculate the Net Present Value NPV Profitability Index PI and Internal Rate of Return IRR for ea... View the full answer