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Exclusive investments have the following cash flows

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Reference no: EM131318481

Assume two mutually exclusive investments have the following cash flows:

Project

Year 0

Year 1

Year 2

Year 3

Project A

-$200

$100

$100

$100

Project B

-$300

$150

$125

$150





Complete the following table assuming that the cost of capital is 10%:  SHOW ALL WORK!

Project A

Project B

Under this Investment Criteria which project would you choose? (Enter A or B)

NPV


IRR


Payback


MIRR


Profitability Index


Based on your answers in the table above, which project would you finally choose and why? Be sure to show your work.

Reference no: EM131318481

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