Calculate payback period and NPV
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Calculating payback period and NPV. Incosoft, Inc., has the following mutually exclusive projects.
YEAR PROJECT A PROJECT B
0 -£ 7,500 -£5,000
1 £ 4,000 £2,500
2 £ 3,500 £ 1,200
3 £ 1,500 £ 3,000
a.- Suppose Incosoft's payback period cutoff is two years. Which of this two projects should be chosen?
b.- Suppose Incosoft use the NPV rule to rank this two projects. Which project shuld be chosen if the appropriate discount rate is 15%?
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The response provides steps to calculate payback period and NPV.
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Calculating payback period and NPV. Incosoft, Inc., has the following mutually exclusive projects.
YEAR PROJECT A PROJECT ...
Purchase this Solution
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