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Please explain and show all work including equations.

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

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91731325

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