Question: Question 3: Two projects are considered for evaluation. 1. Project A has a cost of $10,000 and is expected to produce benefits of $3,000 per
Question 3: Two projects are considered for evaluation. 1. Project A has a cost of $10,000 and is expected to produce benefits of $3,000 per year for five years. 2. Project B costs $25,000 and is expected to produce cash flows of $7,500 per year for five years. Calculate the NPV, IRR, PI, and PVR for the two projects. Assume the minimum acceptable rate of return and the available reinvestment rate of 8%. Should both projects be accepted if Question 3: Two projects are considered for evaluation. 1. Project A has a cost of $10,000 and is expected to produce benefits of $3,000 per year for five years. 2. Project B costs $25,000 and is expected to produce cash flows of $7,500 per year for five years. Calculate the NPV, IRR, PI, and PVR for the two projects. Assume the minimum acceptable rate of return and the available reinvestment rate of 8%. Should both projects be accepted if
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