Question: The following net cash flows are projected for two separate projects. Your required rate of return is 12%. Year 0 1 2 3 4 5

 The following net cash flows are projected for two separate projects.

The following net cash flows are projected for two separate projects. Your required rate of return is 12%. Year 0 1 2 3 4 5 6 Project A ($150,000) $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 Project B ($400,000) $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 1. Calculate the payback period for Project A and Project B 2. Calculate the NPV of Project A and Project B 3. Calculate the IRR of Project A and Project B 4. Which project(s) would you accept A or B

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