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Mont Irwin Machine Shop is considering the following 3 mutually exclusive projects. The initial investment of...

Mont Irwin Machine Shop is considering the following 3 mutually exclusive projects. The initial investment of each project is $54,000.

Project A Project B Project c
Years operating cash flow
1 28,000 25,000 25,000
2 29,000 29,000 27,000
3 30,000 29,000 33,000
4 29,000 34,000 34,000

Calculate the Payback Period for each project

Calculate the Discounted Payback Period for each project

Which project is better?

Using the data from exercise. Calculate Net Present Value using a 10% cost of capital

Which project is better?

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