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  • Jun 21, 2008, 09:55 AM
    jatko73
    Formulate Answer
    Caledonia is considering two additional mutually exclusive projects. The cash flows associated with these projects are as follows:

    YEAR
    PROJECT A PROJECT B
    0 −$100,000 −$100,000
    1 32,000 0
    2 32,000 0
    3 32,000 0
    4 32,000 0
    5 32,000 $200,000

    The required rate of return on these projects is 11 percent.
    a. What is each project’s payback period?
    b. What is each project’s net present value?
    c. What is each project’s internal rate of return?
    d. What has caused the ranking conflict?
    e. Which project should be accepted? Why?
  • Jun 21, 2008, 12:45 PM
    Curlyben
    Thank you for taking the time to copy your homework to AMHD.
    Please refer to this announcment: https://www.askmehelpdesk.com/financ...-b-u-font.html

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