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Business, 25.04.2020 03:06 amandanunnery33

A&B Enterprises is trying to select the best investment from among three alternatives. Each alternative involves an initial investment of $100,000. Their cash flows follow: Year A B C 1 $10,000 $50,000 $25,000 2 20,000 40,000 25,000 3 30,000 30,000 25,000 4 40,000 0 25,000 5 50,000 0 25,000 (a). Which investment will you select using the payback method? Why?(b). Which investment will you select using the net present value method? (Using a 10% discount rate. Be sure to compute NPV for all three projects(c). Which investment will you select using the internal rate of return method? Please compute IRR for the above three projects.

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