You are considering two independent projects with the following cash flows. The required return for...
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You are considering two independent projects with the following cash flows. The required return for both projects is 12%. Year Project A Project B 0-$675,000-$160,000 1 297,000 75,000 2 389,000 75,000 3 184,000 85,000 Required: [7 Marks) a. If you apply the payback period criterion, which project will you choose? Why? [1.5 Maris) b. If you apply the NPV criterion, which project will you choose? Why? (1.5 Marks) C. If you apply the IRR criterion, which project will you choose? Why? [1.5Marks) d. If you apply the Profitability Index criterion, which project will you choose? Why? [1.5Marks) e. Based on your answers in (a) through (d), which project will you finally choose? Why? 11 Mark All! = A. BI Stop and Il mcbs.proctoring.online is sharing your screen. MacBook Pro
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