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SNA company management is considering two competing investment Projects A and B. Year  Project A  Project B Initial Investment  1000  1000 1 275 300 2 275 300 3 275 300 4 275 300 5 275 300 DISCOUNT RATE 3.15%     help management to choose the most desirable Project .You must use each technique from 1 to 4 and get the answer? 1)Payback Period Technique. 2) Discounted Payback Period Technique. 3) Net Present Value Technique 4) Profitability Index Technique.

SNA company management is considering two competing investment Projects A and B. Year  Project A  Project B Initial Investment  1000  1000 1 275 300 2 275 300 3 275 300 4 275 300 5 275 300 DISCOUNT RATE 3.15%     help management to choose the most desirable Project .You must use each technique from 1 to 4 and get the answer? 1)Payback Period Technique. 2) Discounted Payback Period Technique. 3) Net Present Value Technique 4) Profitability Index Technique.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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SNA company management is considering two competing investment Projects A and B.

Year  Project A  Project B
Initial Investment  1000  1000
1 275 300
2 275 300
3 275 300
4 275 300
5 275 300
DISCOUNT RATE 3.15%    

help management to choose the most desirable Project .You must use each technique from 1 to 4 and get the answer?


1)Payback Period Technique.
2) Discounted Payback Period Technique.
3) Net Present Value Technique
4) Profitability Index Technique.

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