Question: Two mutually exclusive projects are under consideration with the details shown. The company's required rate of return for projects of this risk level is 14%.
Two mutually exclusive projects are under consideration with the details shown. The company's required rate of return for projects of this risk level is 14%. Using this information, answer the questions below Year Project A Project B 0 (390,000) (62,000) 60,000 28,000 2 74,000 26.000 3 99.000 22,000 414,000 18,600 1 4 A) Calculate the payback period for each project. Round to two decimals. Project Project B B) Based on the result of the payback calculation, which project would you recommend? Answer with the letter A or B only. c) Calculate the Net Present Value for each project. Round to no decimals and do not enter dollar signs or commas. Project A Project B
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