Consider the following table for two projects' expected cashflows. Project A -35,000 18,000 18,000 20,000...
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Accounting
Consider the following table for two projects' expected cashflows.
Project A -35,000 18,000 18,000 20,000
Project B -35,000 0 25,000 37,500
a.Using payback analysis, which project is preferable?__________________
b.Given a required rate of return of 14%, which project would you prefer?_____________
c.If the required rate was 9.5%, would you change your stance?_________________
d.What is the IRR of each project?__________________________________
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