Calculate the payback period and net present value

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The cash flow for projects A, B, and C are given below. Calculate the payback period and net present value for each project (assume a 10% discount rate).

If A and B are mutually exclusive and C is independent, which project, or combination of projects, is preferred using (a) the payback method or (b) the net present value method? What do the results tell you about the value-additivity properties of the payback method?

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Reference no: EM131245330

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