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Finance

Question: Year End Project A Project B

0 ($100) ($100)

1 $60 0

2 $60 0

3 $140

Opportunity Cost of Capital = 9% Maximum Acceptable Payback Period is less than 2 years.

2. Assuming that the projects are independent (they do not compete with each other; hence you could accept both of them). Which project(s) would you accept based on:

NPV?

IRR?

Payback?

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