MNO Enterprises is considering two investment opportunities. The cash flows for each are provided below....

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Accounting

MNO Enterprises is considering two investment opportunities. The cash flows for each are provided below. The discount rate is 9%.

Year

Project Z

Project Y

0

-$70,000

-$80,000

1

$20,000

$25,000

2

$25,000

$30,000

3

$15,000

$20,000

4

$10,000

$15,000

a. Compute the payback period for each project. b. Calculate the NPV and recommend which project should be undertaken.

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