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A firm is considering the two mutually exclusive investments projects. Project Alpha requires an initial outlay of $600 and will return $160 per year for the next seven years; Project Beta requires an initial outlay of $1,100 and will return $350 per year for the next five years. Assuming a 11% required return, calculate the NPV, IRR, Payback Period, PI, and MIRR of each project. Which project is preferable and why?

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  • Category:- Business Economics
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