Company X is considering two mutually exclusive projects with the following cash flows:YearProject AProject B0-$3,500,000-$3,000,0001$1,000,000$900,0002$1,500,000$1,200,0003$1,800,000$1,600,0004$2,000,000$2,500,000Requirements:1.Estimate...
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Company X is considering two mutually exclusive projects with the following cash flows: YearProject AProject B 0-$3,500,000-$3,000,000 1$1,000,000$900,000 2$1,500,000$1,200,000 3$1,800,000$1,600,000 4$2,000,000$2,500,000 Requirements: 1.Estimate the NPV of each project assuming a cost of capital of 12%. 2.Calculate the IRR for each project. 3.Determine the payback period for each project. 4.Recommend which project should be undertaken based on NPV and IRR.
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