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Please Show Steps :) 1) Project S has a cost of $10,000 and is...

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Finance

imagePlease Show Steps :)

1) Project S has a cost of $10,000 and is expected to produce cash flows of $3,000 per year for 5 years. Project L costs $25,000 and is expected to produce cash flows of $7,400 per year for 5 years. The appropriate cost of capital for both projects is 12%. Assume that the two projects are mutually exclusive. Compute the NPV, IRR, and MIRR of each project. Which project would you select based on each criterion? Please provide a brief justification for your recommendation. Suppose you had to advise your boss about which of these two projects the company should select, what would be your final assessment and advice? Explain. a) b)

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