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Business, 18.04.2020 07:01 joserodriguez212004

Comparing Investment Criteria [LO1, 2, 3, 5, 7] Consider the following two mutually exclusive projects: Cash Flow (B) Year Cash Flow (A) -$50,000 -$350,000 24,000 45,000 22,000 19,500 65,000 65,000 14,600 440,000 Whichever project you choose, if any, you require a 15 percent return on your
a. If you apply the payback criterion, which investment will you choose? Why? investment
b If you apply the discounted payback criterion, which investment will you choose? Why?
c. If you apply the NPV criterion, which investment will you choose? Why?
d. If you apply the IRR criterion, which investment will you choose? Why?
e. If you apply the profitability index criterion, which investment will you choose? Why?
f. Based on your answers in (a) through (e), which project will Why? you finally choose?

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Comparing Investment Criteria [LO1, 2, 3, 5, 7] Consider the following two mutually exclusive projec...
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