2. You are considering two mutually exclusive projects with the following cash flows. The discount rate is 7.5 percent: YEAR PROJECT N PROJECT Y - P21,000,000 - P21,000,000 1 7,200,000 8,500,000 (a)...

2.<br>You are considering two mutually exclusive projects with the following cash flows. The discount rate is 7.5<br>percent:<br>YEAR<br>PROJECT N<br>PROJECT Y<br>- P21,000,000<br>- P21,000,000<br>1<br>7,200,000<br>8,500,000<br>(a) Calculate the payback period of each<br>project. (<br>(b) Compute the net present value of the<br>two projects.<br>(c) Which project should be accepted?<br>Justify your answer.<br>2<br>4,900,000<br>5,200,000<br>9,100,000<br>4,900,000<br>4<br>6,100,000<br>8,700,000<br>

Extracted text: 2. You are considering two mutually exclusive projects with the following cash flows. The discount rate is 7.5 percent: YEAR PROJECT N PROJECT Y - P21,000,000 - P21,000,000 1 7,200,000 8,500,000 (a) Calculate the payback period of each project. ( (b) Compute the net present value of the two projects. (c) Which project should be accepted? Justify your answer. 2 4,900,000 5,200,000 9,100,000 4,900,000 4 6,100,000 8,700,000

Jun 07, 2022

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2. You are considering two mutually exclusive projects with the following cash flows. The discount rate is 7.5 percent: YEAR PROJECT N PROJECT Y - P21,000,000 - P21,000,000 1 7,200,000 8,500,000 (a)...

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