YearProject IProject J0-$3,000,000-$4,000,0001$1,200,000$1,000,0002$1,400,000$1,500,0003$1,600,000$2,000,0004$1,800,000$2,500,000Requirements:Calculate the NPV of each project at a 6% discount rate.Determine the IRR...
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Accounting
Year
Project I
Project J
0
-$3,000,000
-$4,000,000
1
$1,200,000
$1,000,000
2
$1,400,000
$1,500,000
3
$1,600,000
$2,000,000
4
$1,800,000
$2,500,000
Requirements:
Calculate the NPV of each project at a 6% discount rate.
Determine the IRR for each project.
Identify which project should be selected based on NPV.
Assess the payback period for both projects.
Evaluate the impact of a 2% increase in the discount rate on the NPV of each project.
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