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problem: Caledonia is considering 2 additional mutually exclusive projects. The cash flows associated with these projects are as follows:

YEAR

PROJECT A

PROJECT B

0

-$100,000

-$100,000

1

32,000

0

2

32,000

0

3

32,000

0

4

32,000

0

5

32,000

$200,000

The required rate of return on these projects is eleven percent.

[A] find out each project's payback period?

[B] find out each project's net present value?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M916280

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