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Consider the following two mutually exclusive projects:

Year Cash Flow (A) Cash Flow (B)

0 -$ 347,000 -$ 49,500

1 48,000 24,300

2 68,000 22,300

3 68,000 19,800

4 443,000 14,900

Whichever project you choose, if any, you require a 15 percent return on your investment.

What is the discounted payback period for each project?

What is the profitability index for each project?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9792513

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