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corporate finance QUESTION 33 You have the choice of two...

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Accounting

corporate finance
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QUESTION 33 You have the choice of two projects with the following cash flows. Each project has an initial investment of 20,000. Your company wants to choose only one project and will choose the one with the quickest payback Year Project A 1 5.000 2 5 ,000 3 5,000 5,000 5 250,000 Project B 15,000 5,000 1,000 1,000 1,000 4 What is the Payback period for Project A (in years) What is the Payback period for Project B (in years) Which project would you recommend using the payback rule? (Circle one) A Which project would you recommend if not using payback? (Circle one): (1pt) (Ipt) B (Ipt) A / B (pt) QUESTION 34 You are the financial manager at a company and have a $1,000,000 investment budget for capital projects. Calculate the profitability Index each project? (3pts total) PV of Project Cash Flow Investment NPV B C $1,275,000 $530,000 $820,000 $1,000,000 $400,000 $600,000 $275,000 $130,000 $220,000 What is the profitability Index for Project A? What is the Profitability Index for Project B? What is the Profitability Index for Project C? (1 pt) (Ipt) (1 pt)

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