2. Given the following cash +bws for project X and project Y, Project Y Year Project X -62000 -105000 1 27000 10000 2 13500 18000 3 11000 22000 4 10000 25000 9000 32000 7500 40000 a. Calculate the...


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2. Given the following cash +bws for project X and project Y,<br>Project Y<br>Year<br>Project X<br>-62000<br>-105000<br>1<br>27000<br>10000<br>2<br>13500<br>18000<br>3<br>11000<br>22000<br>4<br>10000<br>25000<br>9000<br>32000<br>7500<br>40000<br>a. Calculate the NPV, IRR, and traditional payback period for each project, assuming a required<br>rate of return of 8 percent.<br>b. If the projects are independent, which project(s) should be selected? If they are mutually<br>exclusive, which project should be selected?<br>

Extracted text: 2. Given the following cash +bws for project X and project Y, Project Y Year Project X -62000 -105000 1 27000 10000 2 13500 18000 3 11000 22000 4 10000 25000 9000 32000 7500 40000 a. Calculate the NPV, IRR, and traditional payback period for each project, assuming a required rate of return of 8 percent. b. If the projects are independent, which project(s) should be selected? If they are mutually exclusive, which project should be selected?

Jun 03, 2022
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