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Calculate the Net Present Value and the Annualized Net Present Value for the two projects with the following cash flow streams given an MARR of 15%. Which project is preferable based on the NPV? Which is preferable based on the ANPV? Which of the two techniques should be used in this case? Why?

Year

0

1

2

3

4

5

CF1

-$54,687

$32,567

$28,456

$30,423



CF2

-$98,435

$28,954

$31,984

$36,976

$38,984

$42,978

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91731201

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