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Tri Star, Inc., has the following mutually exclusive projects: Year Project A Project B 0 –$...

Tri Star, Inc., has the following mutually exclusive projects:

Year Project A Project B
0 –$ 13,800 –$ 9,200
1 8,400 3,900
2 7,000 3,400
3 2,100 5,800


Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Payback Period
Project A years
Project B years


Based on the payback period, which project should the company accept?

Project B

Project A


If the appropriate discount rate is 10 percent, what is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

NPV
Project A $
Project B $


Based on the NPV, which project should the company accept?

Project A

Project B

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