Analyze the following projects based on the cash flow diagrams provided:Project KYear 0: -$3,000,000Year 1:...

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Accounting

Analyze the following projects based on the cash flow diagrams provided:

Project K

  • Year 0: -$3,000,000
  • Year 1: $900,000
  • Year 2: $1,100,000
  • Year 3: $1,200,000
  • Year 4: $1,500,000

Project L

  • Year 0: -$3,200,000
  • Year 1: $1,000,000
  • Year 2: $1,200,000
  • Year 3: $1,300,000
  • Year 4: $1,600,000

a. Calculate the NPV at a 10% discount rate. b. Determine the IRR. c. Find the payback period. d. Recommend which project should be selected based on your analysis.

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