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