Org Pvt. Ltd. is considering two mutually exclusive capital investments. The project’s expected net cash flows are as follows: Expected Cash Flows: Year Project A Project B 0 -400 -575 1 95 150 2 110 200 3 118 250 4 125 275 5 140 230 6 150 180   a. If you were told that each project’s cost of capital was 10%, which project should be selected using the NPV criteria? b. What is each project’s IRR? c. What is the regular payback period for these two projects?

Q: The following are the cash flows of two projects: Year Project A Project B 0 ?$300 ?$300 1 180 200 2…

A: Project A :YearCash flow0-$300.001$180.002$180.003$180.004$180.00Project B:YearCash…

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A: NPV = Present Value of Cash Inflow - Initial Investment

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Q: ange of MARR values v MARR > 23.4% MARR = 33.3% %3D MARR > 44.2% MARR < 44.2% MARR < 23.4%

A: MARR represents the minimum attractive rate of return the company should earn.

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A: To Find: Profitability Index

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A:

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.