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Determine which project you prefer to invest in

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Reference no: EM132466206

The net cash flows for a two mutually exclusive projects "Superman Project" and "Batman Project" are shown in the following table. The company current cost of capital is 12%. 

Year Superman Project Batman Project

0 -2000 -2000

1 1000 1000

2 1000 1500

3 1500 500

4 1000 500

Use the payback period, net present value, & profitability index to determine which project you prefer to invest in. which method you prefer and why?

Reference no: EM132466206

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