Question: Problem 12-10 Payback and net present value [L012-3, 12-4] X-treme Vitamin Company is considering two investments, both of which cost $32,000. The cash flows are
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Problem 12-10 Payback and net present value [L012-3, 12-4] X-treme Vitamin Company is considering two investments, both of which cost $32,000. The cash flows are as follows: Use for an approximate answer but calculate your final answer using the formula and financial calculator methods. a-1. Calculate the payback period for Project A and Project B. (Round your answers to 2 decimal places.) b-1. Calculate the net present value for Project A and Project B. Assume a cost of capital of 8 percent. (Do not round intermediate calculations and round your final answers to 2 decimal places.)
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