Question: Petrochem Industries is considering two projects to develop. The expected cash inflows are as follows: Each Project requires an investment of $600,000. A rate of

Petrochem Industries is considering two projects to develop. The expected cash inflows are as follows:

Each Project requires an investment of $600,000. A rate of 10% has been selected for the Net Present Value (NPV) Analysis. Required: Calculate through the NPV and the Payback method and suggest which project should be recommended based on each method.

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