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    Accounting payback, Financial payback, NPV, & IRR

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    Given on Project A and Project B, both 4 yr. projects:

    Project A Project B
    Investment $750,000 $900,000

    4 yrs. C/F (1) $200,000 (1) $300,000
    (2) $250,000 (2) $325,000
    (3) $275,000 (3) $200,000
    (4) $300,000 (4) $250,000

    k = 10% 9%

    Calculate for both projects Accounting payback, Financial payback, NPV, & IRR. For each project, should you go ahead with investment and why or why not? And if project were mutually exclusive, which one, if either should you invest in and why?

    © BrainMass Inc. brainmass.com December 15, 2022, 5:05 pm ad1c9bdddf
    https://brainmass.com/business/internal-rate-of-return/accounting-payback-financial-payback-npv-irr-60390

    Solution Preview

    Given on Project A and Project B, both 4 yr. projects:

    Project A Project B
    Investment $750,000 $900,000

    4 ...

    Solution Summary

    This explains the steps to compute the Accounting payback, Financial payback, NPV, & IRR

    $2.49

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