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Consider the following two mutually exclusive proj...

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Consider the following two mutually exclusive projects. Year Cash Flow(A) Cash Flow (B) 0 -$300,000 -$40,000 1 20,000 19,000 2 50,000 12,000 3 50,000 18,000 4 390,000 10,500 If you apply the payback criterion, which investment will you choose? Why? If you apply the discounted payback criterion, which investment will you choose? Why? If you apply the NPV criterion, which investment will you choose? Why? If you apply the IRR criterion, which investment will you choose? If you apply the profitability index criterion, which investment will you choose? Why? Based on all your answers, which project will you finally choose? Why? (I cannot open excel documents)

 

Paper#5461 | Written in 18-Jul-2015

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