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Assume initial investment is $95,000 for all three projects and interest = 6.0%: Project A Year Cash Flows 1 25,000 2 25,000 3 25,000 20,000 20,000 4 5 Project B Cash Flows 20,000 25,000 25,000 20,000 25,000 Project C Cash Flows 25,000 25,000 20,000 25,000 20,000

Assume initial investment is $95,000 for all three projects and interest = 6.0%: Project A Year Cash Flows 1 25,000 2 25,000 3 25,000 20,000 20,000 4 5 Project B Cash Flows 20,000 25,000 25,000 20,000 25,000 Project C Cash Flows 25,000 25,000 20,000 25,000 20,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please compute Payback Period, Net Present Value (NPV) and Internal Rate of Return (IRR). For Payback Period, provide your answer to the nearest two decimal places (X.XX) -- do not write 'years' or 'yrs' please. For NPV, please indicate the whole dollar value with proper commas -- do not use dollar signs. For IRR, list the percentage to the nearest two places (X.XX%) and include the percent sign.

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Assume initial investment is $95,000 for all three projects and interest = 6.0%: Project A Year Cash Flows 1 25,000 25,000 25,000 20,000 20,000 2 3 4 5 Project B Cash Flows 20,000 25,000 25,000 20,000 25,000 Project C Cash Flows 25,000 25,000 20,000 25,000 20,000
Transcribed Image Text:Assume initial investment is $95,000 for all three projects and interest = 6.0%: Project A Year Cash Flows 1 25,000 25,000 25,000 20,000 20,000 2 3 4 5 Project B Cash Flows 20,000 25,000 25,000 20,000 25,000 Project C Cash Flows 25,000 25,000 20,000 25,000 20,000
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