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In: Finance

Project 1 Project 2 Initial Year 1 $ 35,000 $ 35,000 Year 2 5,000 16,000 Year...

Project 1

Project 2

Initial Year 1

$ 35,000

$ 35,000

Year 2

5,000

16,000

Year 3

16,000

23,000

Year 4

22,000

12,000

Year 5

(3,600)

11,600

Estimated scrap value

5,000

5,000

Cost of capital 14%

Calculate:

  • Payback period
  • Average rate of return on initial investment
  • Net present value

Solutions

Expert Solution

jeff jeffy answered 1 year ago
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