Calculate all four capital budgeting techniques

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ABC is evaluating a new project. You are the manager and need to make a decision: Calculate all four capital budgeting techniques A. Net present value, B. Internal rate of return (IRR), C. Payback period for each of the following projects. D. Profitability Index. The firm requires a rate of return of 14 percent Which project(s) should be purchased if they are independent? Which project(s) should be purchased it they are mutually exclusive? Year Project Alpha Project Beta 0 $(270,000) $(300,000) 1 120,000 0 2 120,000 (80,000) 3 120,000 555,000

Reference no: EM131066418

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