Question: please show all the calculations Question 1 (27 points) Listen You are considering investing in the following mutually exclusive projects. You require 15% return on
please show all the calculations
Question 1 (27 points) Listen You are considering investing in the following mutually exclusive projects. You require 15% return on your investment Project Year 0 Year 1 Year 2 Year 3 1 -$550 $250 $250 $250 $200 $200 A 11 -$400 $200 1. Which investment will you choose based on the payback criterion? (5 Marks) 2. Which investment will you choose based on the discounted payback criterion? (10 Marks) 3. If you apply the NPV criterion, which investment will you choose? Why? (12 Marks) SHOW ALL CALCULATIONS INCLUDING FORMULAS USED
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