Investment Details:Project A:Initial Investment: $2,500,000Annual Cash Inflows: $700,000Useful Life: 5 yearsProject B:Initial Investment: $3,000,000Annual Cash...

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Accounting

Investment Details:

  • Project A:
    • Initial Investment: $2,500,000
    • Annual Cash Inflows: $700,000
    • Useful Life: 5 years
  • Project B:
    • Initial Investment: $3,000,000
    • Annual Cash Inflows: $800,000
    • Useful Life: 7 years

Requirements:

  • Conduct a capital budgeting analysis for Project A and Project B.
  • Calculate the payback period and net present value (NPV) for each project.
  • Present the analysis in a detailed table format.
  • Discuss which project is more viable based on the analysis.

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