Two projects are considered for evaluation

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Reference no: EM13850475

Two projects are considered for evaluation. Project A has a cost of $10000 and is expected to produce benefits of $3000 per year for five years. Project B costs $25000 and is expected to produce cash flows of $7500 per year for five years. Calculate the NPV, IRR, PI, and PVR for the two projects. Assume the minimum acceptable rate of return and the available reinvestment rate of 8%. Should both projects be accepted if they are independent?

Reference no: EM13850475

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