Calculate payback and the net present value

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Two investment projects which are mutually exclusive both require a $10,000,000 investment. Projected cash flows are:

Year Project A Project B

1 $3,500,000 $6,500,000

2 3,500,000 3,000,000

3 3,500,000 3,000,000

4 3,500,000 1,000,000

If your discount rate is 12 percent, calculate payback and the net present value.

 

Reference no: EM13340689

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