Which projects should be purchased if they

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Compute the (A) net present value,(B) discounted payback period(DPB) for each of the following projects. The firms required rate of return is 14 percent.

Year Projects Alpha Project beta

0 $(270,000) $(300,000)

1 120,000 0

2 120,000 (80,000)

3 120,000 555,000

Which projects should be purchased if they are independent? Which projects should be purchased if they are mutually exclusive?

Reference no: EM132288735

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