The director of finance has asked you the managerial economist to analyze proposed projects. Each project...

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The director of finance has asked you the managerial economist to analyze proposed projects. Each project has a cost of Ksh 10,000 and a cost of capital of 12%. The proposed projects expected net cash flows (in Ksh) are as follows: Year 0 1 2 3 4 Expected Net cash flow Project A Project B (10,000) 6,500 3,000 3,000 1,000 (10,000) 3,500 3,500 3,500 3,500 For each project, compute the techniques below and advise the director: i) The payback period (PB) ii) Net Present value (NPV) iii) Internal Rate of Return (IRR) (5 marks) (5 marks) (5 marks) (nn) The director of finance has asked you the managerial economist to analyze proposed projects. Each project has a cost of Ksh 10,000 and a cost of capital of 12%. The proposed projects expected net cash flows (in Ksh) are as follows: Year 0 1 2 3 4 Expected Net cash flow Project A Project B (10,000) 6,500 3,000 3,000 1,000 (10,000) 3,500 3,500 3,500 3,500 For each project, compute the techniques below and advise the director: i) The payback period (PB) ii) Net Present value (NPV) iii) Internal Rate of Return (IRR) (5 marks) (5 marks) (5 marks) (nn)

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The detailed answer for the above question is provided below i The payback period for Project A is 2... View the full answer