Question: STUDY Raned on Iegrated Case n a suppler prejecta' aftor lax cash flows (in thousands of dolars) Project Insitial inveabrment CF, 160 200 The company's
STUDY Raned on Iegrated Case" n a suppler prejecta' aftor lax cash flows (in thousands of dolars) Project Insitial inveabrment CF, 160 200 The company's wogh Average Cost of Capital is 10%. You must deinwo whether one or both of the projects should be accepted 1 Calculate each project's Net Present Value (NP 2 Based on the NPVs, which project(s) should be chosen if the projects are independent? I they are mutually exclusive? 3 Calculate each project's Profitability Index (P) 4 Based on the Pis, which project(s) should be chosen if the projects are independent? If they are mutually exclusive? 5 Calculate each project's Internal Rate of Return (IRR) 6. Based on the IRRs, which project(s) should be chosen if the projects are independent? If they are mutually exclusive? 7 Calculate each project's payback period 8. The company's maximum acceptable payback period is two years. Based on this maximum payback and the computed payback periods, which project(s) should be chosen if the projects are independent? If they are mutually exclusive
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