Project Financial Assessment (in $):Project A:Initial Cost: $50,000Year 1: $10,000Year 2: $15,000Year 3: $20,000Year 4:...
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Accounting
Project Financial Assessment (in $):- Project A:
- Initial Cost: $50,000
- Year 1: $10,000
- Year 2: $15,000
- Year 3: $20,000
- Year 4: $25,000
- Project B:
- Initial Cost: $45,000
- Year 1: $5,000
- Year 2: $10,000
- Year 3: $20,000
- Year 4: $30,000
- Initial Cost: $50,000
- Year 1: $10,000
- Year 2: $15,000
- Year 3: $20,000
- Year 4: $25,000
- Initial Cost: $45,000
- Year 1: $5,000
- Year 2: $10,000
- Year 3: $20,000
- Year 4: $30,000
Required:
- Calculate the payback period for each project.
- If the standard payback period is 3 years, which project will you select?
- Compute the discounted payback period at a cost of capital of 8%.
- Determine the NPV of each project using a discount rate of 8%.
- Calculate the IRR for each project.
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