table is given below : attached image   g) If projects are mutually exclusive, which project would you accept? i) at 5% ii) at 15% h) If projects are independent (not mutually exclusive), which project(s) would you accept? i) at 5% ii) at 15%

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
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table is given below : attached image

 

g) If projects are mutually exclusive, which project would you accept?

i) at 5%

ii) at 15%

h) If projects are independent (not mutually exclusive), which project(s) would you accept?

i) at 5%

ii) at 15%

Net Cash Flows ($)
Discount
NPVS
NPV.
Rate (%)
0%
Year (t)
Project S
Project L
$800
$1100
$(3000)
$(3000)
454.85
554.32
1.
1500
400
10
161.33
108.4
(259.24)
(565.97)
1200
900
15
(90.74)
3.
800
1300
20
(309.03)
4
300
1500
Transcribed Image Text:Net Cash Flows ($) Discount NPVS NPV. Rate (%) 0% Year (t) Project S Project L $800 $1100 $(3000) $(3000) 454.85 554.32 1. 1500 400 10 161.33 108.4 (259.24) (565.97) 1200 900 15 (90.74) 3. 800 1300 20 (309.03) 4 300 1500
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